New USTR reports highlight ongoing market-distorting policies
World Trade Organization (WTO) rules are "not sufficient" to rein in China's market-distorting practices, according to an annual United States Trade Representative (USTR) report sent to Congress on Friday. Russia’s trade policies and practices were heavily criticized in a separate report.
The WTO is ill-equipped to ensure that China fully meets is accession commitments. The results have included forced technology transfer for U.S. firms and massive industrial overcapacity in sectors like steel as China continues to shun market disciplines and WTO rules. As a result, the USTR report vows to "hold China strictly accountable for adherence to its WTO obligations."
Said Alliance for American Manufacturing (AAM) President Scott Paul:
"I want to commend the USTR for its work to identify both the WTO’s shortcomings as well as the blatant flaunting of global trade rules by China and Russia. These reports are validation for hundreds of thousands of factory workers demanding action against unfair trade practices.
"China’s mercantilism has had clear, negative effects on our own economy, and its government has failed to take corrective action despite years of promises to do so.
"The fact that the WTO so far has been virtually toothless is also troubling.
"We look forward to working with this administration and Congress to stop trade cheating, reform WTO rules, and ensure that American workers and businesses are put first."