Autoblog http://www.autoblog.com Autoblog http://www.blogsmithmedia.com/www.autoblog.com/media/feedlogo.gif Autoblog http://www.autoblog.com en-us Copyright 2013 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Obama calls for trade case against China]]>http://www.autoblog.com/2012/09/18/obama-calls-for-trade-case-against-china/http://www.autoblog.com/2012/09/18/obama-calls-for-trade-case-against-china/http://www.autoblog.com/2012/09/18/obama-calls-for-trade-case-against-china/#commentsFiled under: , ,



According to an Automotive News report, the U.S. government has launched a trade case that focuses on ending Chinese subsidies of its automotive industry, which threaten American auto industry jobs.

The case claims that the Chinese government has subsidized its automotive export industry in a way that is not allowed under World Trade Organization rules. The U.S. Trade Representative's office is also pushing ahead in a separate WTO case against Chinese duties on exports from the U.S. to China.

As a result of the move, China filed a complaint with the WTO against a new U.S. law aimed at combating China's subsidies. The move is called "Countervailing duties" and includes tariffs on tires and steel.

The launching of this case comes at a time when President Obama is looking for an edge in key battleground states like Ohio, where jobs are put at risk by China's subsidies. The case allows Obama to take a strong stance one the issue; presidential challenger Mitt Romney has criticized the White House for being too soft with China as it regards defending American jobs.

The Ohio auto parts industry directly employs over 50,000 people, and China's undervaluation of its yuan currency has made for cheap Chinese products, which undercut U.S. products. Romney has vowed to declare China a currency manipulator on his first day in office, while current administration officials say much progress has been made without turning up tensions.

Due to WTO rules, China's counter-claim has enacted a 60-day period, in which the U.S. and China can talk things out. After that periods is up, China could ask the WTO to make a ruling on the matter.

Obama calls for trade case against China originally appeared on Autoblog on Tue, 18 Sep 2012 18:01:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>automotive newsautomotive subsidieschinaobamaohioromneysubsidiesworld trade organizationwtoTue, 18 Sep 2012 18:01:00 EST http://www.autoblog.com/feed/20325153/article-comments.xml http://www.autoblog.com/feed/2012/09/18/obama-calls-for-trade-case-against-china/20325153/article-detail.xml 20325153 http://www.blogcdn.com/www.autoblog.com/media/2012/09/president-barack-obama-with-flag-1347998402_thumbnail.jpg http://www.blogcdn.com/www.autoblog.com/media/2012/09/president-barack-obama-with-flag-1347998402.jpg <![CDATA[REPORT: U.S. psyched as China decides to cut auto part tariffs ]]>http://www.autoblog.com/2009/08/31/report-u-s-psyched-as-china-decides-to-cut-auto-part-tariffs/http://www.autoblog.com/2009/08/31/report-u-s-psyched-as-china-decides-to-cut-auto-part-tariffs/http://www.autoblog.com/2009/08/31/report-u-s-psyched-as-china-decides-to-cut-auto-part-tariffs/#commentsFiled under: , , ,


Chinese-market 2010 Buick Regal - Click above for high-res image gallery

China joined the World Trade Organization in 2001, at which point it was given five years to adjust to the rules of open trade before any complaints were lodged against it. On schedule, in 2006, the complaints began, lodged by the U.S., Europe, and Canada.

In one example of open trade prohibitive practices, Automotive News reports that if a car built in China uses a percentage of imported auto parts above a specific threshold, China taxes each imported part an additional 25%. In such a price-competitive atmosphere, such a policy all but proscribes the use of imported parts, a move that has lead to complaints from all three continents.

The original complaint was decided at the end of last year in a ruling against China. Beijing appealed, to no avail. In response, China has rescinded the tax, which is an initial step to truly opening the market up for foreign parts- and automakers.

The U.S. trade in auto parts to China is not even 1/13th what it is to Mexico, a statistic that a host of companies would clearly like to change.


Gallery: 2009 Chinese-spec Buick Regal


[Source: Automotive News, sub req'd]

REPORT: U.S. psyched as China decides to cut auto part tariffs originally appeared on Autoblog on Mon, 31 Aug 2009 15:31:00 EST. Please see our terms for use of feeds.

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The European Union made noises last year about having the WTO verify that the U.S. auto industry assistance package doesn't violate any international trade rules. Now French President Nicolas Sarkozy has said he will ask the World Trade Organization to stick their hands into the matter.

Critics suggest that this could be a diversionary tactic - Sarkozy himself was accused of violating trade rules with his proposed assistance to Renault and PSA Peugeot/Citroen. Or it could be a way to see if both the proposed French and U.S. proposals will pass the WTO test. Either way, Sarkozy and other European heads of state will meet to plan a Europe-wide response to the auto industry situation, as the E.U. continues to mull whether to bring a formal appeal to the WTO regarding the United States' bailout package.

[Source: Automotive News Europe, sub req'd. | Image: Eric Feferberg/AFP/Getty]

France's Sarkozy urges verification that U.S. auto aid jibes with world trade rules originally appeared on Autoblog on Sat, 28 Feb 2009 08:23:00 EST. Please see our terms for use of feeds.

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The US Congress is contemplating a bailout of $25 billion or more for US automakers, and the European Union is watching closely. European Commission President, Jose Manuel Barroso, told Europe 1 Radio that he is prepared to rat out the US government to the World Trade Organization if the EU considers the bailout illegal.

Barroso wants to look over any aid package to determine if it's "illegal state aid." European new car registrations are down 14.5% in recent months, and we're guessing the EU wants to ensure that any relief the US government may give domestic automakers doesn't afford them an unfair advantage overseas. We aren't exactly sure what the WTO could do to stop aid to the domestics, and it would likely be difficult to prove that state aid would help US automakers in Europe, especially since Ford and GM's biggest issues are here at home.

[Source: Automotive News - Sub. Req. | Photo: Dominique Faget/Getty]

European Union may complain to WTO over Detroit bailout originally appeared on Autoblog on Fri, 14 Nov 2008 17:58:00 EST. Please see our terms for use of feeds.

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