The White House announced today that it has filed a request for consultations at the World Trade Organization (WTO) regarding China’s export restrictions of rare earth metals, as well as tungsten and molybdenum. Rare earth metals are used in a broad range of manufactured products: auto parts, lighting, wind turbines, and countless other goods. The European Union and Japan have filed suit against China as well.
Additionally, President Obama signed into law today a bill that allows the Department of Commerce to continue to apply countervailing duties against non-market economies.
Said Scott Paul, Executive Director of the Alliance for American Manufacturing (AAM), of these new trade actions:
“It’s clear that the Administration’s trade agenda is shifting to more aggressive enforcement, which is welcome news for America’s workers and businesses as they face both subsidized Chinese competition in America and restricted access to China’s marketplace.
“Over the past few years, our activists having been working hard to make sure their elected officials know just what is at stake on trade laws, surging auto parts imports from China, and China’s unfair trade practices such as rare earth mineral export restrictions. It appears that our leaders are finally beginning to listen.
“We are pleased that the Obama Administration and Congress are cracking down on China’s cheating, but there is much more work to do. Our trade deficit with China is growing, not shrinking. China has devalued the Yuan again this year. And, the subsidies Beijing is lavishing on its auto parts sector are threatening the very heart of our manufacturing recovery in America.
“We look forward to working with the Administration and Congress to ensure a level playing field for American workers and businesses, which will grow jobs in manufacturing and other key industries.
“While we appreciate the impact that the upcoming election has in focusing politicians on these problems, America’s manufacturers and workers hope that come November 7th, their interests will not be forgotten.”