WTO complaint over USA

China filed World Trade Organization cases Friday challenging US anti-subsidy tariffs on 22 Chinese goods including steel, widening a conflict between the two giant trading partners.

The cases come as a weakening global economy fuels trade frictions as governments try to boost exports and create jobs.

China began its challenge by requesting consultations with the United States through the WTO to resolve the dispute.

If that fails, China can request a ruling by a WTO panel, which can order the US to scrap measures found to violate free-trade commitments or to pay compensation.

Beijing appeared to be challenging Washington’s overall approach to subsidies and dumping as well as its handling of individual cases.

China’s mission to the WTO accused Washington of improperly using anti-dumping measures to shield US companies from competition.

“The relevant practices constitute the abuse of trade remedy measures which undermines the legitimate interests of China’s enterprises,” said a statement by Beijing’s mission to the WTO.

It complained Washington repeated its “wrongful practice” in the latest dispute over Chinese-made solar power equipment.

The Chinese statement said the disputed US measures affect Chinese exports to the United States worth a total of $7.3 billion.

It gave no details but the Chinese government’s Xinhua News Agency said products included steel, paper and solar cells.

The two governments also have argued over access to each others’ markets for poultry, tires and other goods.

On Thursday, China’s Ministry of Commerce issued a ruling that the US government paid improper subsidies for six renewable energy projects, violating free-trade rules.

The ministry gave no indication how Beijing might respond.

That ruling came in an investigation launched in November after Washington began a probe into whether Chinese manufacturers were selling solar cells and other equipment in the United States at improperly low prices.

In Washington, the US government said Friday that China has made progress in allowing the yuan to rise against the dollar and declined to accuse Beijing of manipulating its currency to gain a trade advantage.

The decision issued by the US Department of the Treasury on Friday should help avert a potential trade dispute. But the department said China’s currency is still undervalued and must rise further against the dollar.

The yuan has gained 8 percent against the dollar in the past two years. A lower-valued currency gives China a trade advantage by making its exports cheaper and US imports more expensive. 
   
    

Source: Argentine Beef Packers S.A.