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Commerce applies anti-subsidy law to China
31 Mar '07
3 min read
The U.S. Department of Commerce announced its preliminary decision to apply U.S. anti-subsidy law to imports from China.
This is the first time countervailing duties will be imposed on imports from a non-market economy. The decision alters a 23-year old bipartisan policy of not applying the countervailing duty (CVD) law to non-market economy countries, and reflects China's economic development.
This preliminary decision determined that Chinese producers and exporters of coated free sheet paper received countervailable subsidies ranging from 10.90 to 20.35 percent.
"This Administration has aggressively enforced our anti-dumping laws to combat unfair Chinese trade." said Commerce Secretary Carlos M. Gutierrez. "China's economy has developed to the point that we can add another trade remedy tool, such as the countervailing duty law. The China of today is not the China of years ago."
"Just as China has evolved, so has the range of our tools to make sure Americans are treated fairly. By acting on the petition filed last October, the United States today is demonstrating its continued commitment to leveling the playing field for American manufacturers, workers and farmers."
From 2005 to 2006, imports of coated free sheet paper products from China increased approximately by 177 percent in volume, and were valued at an estimated at $224 million in 2006.
The Department of Commerce has the legal authority to apply the CVD law to non-market economies. In 1984, the Department of Commerce adopted a policy of not applying the U.S. countervailing duty law to non-market economy countries. Commerce reasoned that subsidies had no measurable economic impact in the 1980's Soviet-style economies that were then under consideration.
This is the first time countervailing duties will be imposed on imports from a non-market economy. The decision alters a 23-year old bipartisan policy of not applying the countervailing duty (CVD) law to non-market economy countries, and reflects China's economic development.
This preliminary decision determined that Chinese producers and exporters of coated free sheet paper received countervailable subsidies ranging from 10.90 to 20.35 percent.
"This Administration has aggressively enforced our anti-dumping laws to combat unfair Chinese trade." said Commerce Secretary Carlos M. Gutierrez. "China's economy has developed to the point that we can add another trade remedy tool, such as the countervailing duty law. The China of today is not the China of years ago."
"Just as China has evolved, so has the range of our tools to make sure Americans are treated fairly. By acting on the petition filed last October, the United States today is demonstrating its continued commitment to leveling the playing field for American manufacturers, workers and farmers."
From 2005 to 2006, imports of coated free sheet paper products from China increased approximately by 177 percent in volume, and were valued at an estimated at $224 million in 2006.
The Department of Commerce has the legal authority to apply the CVD law to non-market economies. In 1984, the Department of Commerce adopted a policy of not applying the U.S. countervailing duty law to non-market economy countries. Commerce reasoned that subsidies had no measurable economic impact in the 1980's Soviet-style economies that were then under consideration.
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