Peters led the effort in the House to go after China for Unfair Trade Policies Designed to Undercut the American Auto Workers

West Bloomfield, MI - Today U.S. Rep. Gary Peters applauded the Obama Administration’s decision to challenge China’s antidumping and countervailing duties on more than $3 billion in exports of American build vehicles. On February 13th, 2011, Peters sent a letter to President Obama urging this challenge. The Peters letter was co-signed by 26 other members of Congress.

“President Obama is 100% right to go after unfair Chinese duties designed to stack the deck against American auto workers,” said U.S. Rep. Gary Peters. “In February, I wrote a letter urging the Administration to challenge China for trying to undercut American auto exports and I’m pleased that we helped bring about this important action. I proudly stood with the Obama Administration to defend our auto industry and I'll never stop fighting to protect Michigan's auto manufacturing jobs.”

“As we have made clear, the Obama Administration will continue to fight to ensure that China does not misuse its trade laws and violate its international trade commitments to block exports of American-made products,” said United States Trade Representative Ron Kirk in a statement today. “American auto workers and manufacturers deserve a level playing field and we are taking every step necessary to stand up for them.  This is the third time that the Obama Administration has challenged China’s misuse of trade remedies.” 

Click here for a signed version of the letter.

Below is the text of Rep. Peters’ 2/13/12 letter to President Obama:
February 13, 2011

The President
The White House
Washington, D.C. 20500

Dear President Obama,

As you know, China’s Ministry of Commerce recently announced that China will levy antidumping and countervailing duties on imports from the United States of some vehicles with engine capacities over 2.5 liters.  These duties are unacceptable and unjustified, and are part of a continued pattern of unfair trade practices by the Chinese government.

Before these new duties took effect on December 15, 2011, already existing taxes and duties could add 25% or more to the cost of an American vehicle imported to China.  The new antidumping and countervailing duties could add up to 21.5% and 12.9% respectively to the cost of imported American vehicles, making them significantly less competitive in the Chinese market.

While China has now been a member of the World Trade Organization (WTO) for over ten years, they continue to disregard their responsibilities by flouting WTO agreements and imposing duties in a retaliatory and unfair manner.  The United States already has two active WTO cases against China involving the imposition of antidumping and countervailing duties on flat-rolled electrical steel and chicken broiler products.  China’s new duties on American made vehicles are unlikely to comply with the WTO Antidumping Agreement and the Agreement on Subsidies and Countervailing Measures.

We therefore urge you to work with the United States Trade Representative to initiate a WTO dispute contesting the recent duties imposed on American vehicles by China as soon as possible.  The American auto industry is critical to our nation’s economic recovery, and your Administration must continue working to help American manufacturers fight foreign trade barriers, boost exports, and create jobs.  American workers are the best in the world and we must allow them to compete on a level playing field.  We look forward to working with you on this critical issue.

Sincerely,

___________________________________                          ___________________________________
Gary C. Peters                                                                         John D. Dingell
Member of Congress                                                               Member of Congress

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John Conyers, Jr.                                                                     Dale E. Kildee
Member of Congress                                                               Member of Congress
 

___________________________________                          ___________________________________
Hansen Clarke                                                                         Thaddeus G. McCotter
Member of Congress                                                               Member of Congress

___________________________________                          ___________________________________
Ra?l M. Grijalva                                                                     Donald A. Manzullo
Member of Congress                                                               Member of Congress

___________________________________                          ___________________________________
Michael H. Michaud                                                               Walter B. Jones
Member of Congress                                                               Member of Congress

___________________________________                          ___________________________________
Peter J. Viclosky                                                                     Brian Higgins
Member of Congress                                                               Member of Congress

___________________________________                          ___________________________________
Tammy Baldwin                                                                     John C. Carney, Jr.
Member of Congress                                                               Member of Congress

___________________________________                          ___________________________________
Janice D. Schakowsky                                                            Gene Green
Member of Congress                                                               Member of Congress

___________________________________                          ___________________________________
Mark S. Critz                                                                          Peter A. DeFazio
Member of Congress                                                               Member of Congress

___________________________________                          ___________________________________
Joe Donnelly                                                                           Daniel Lipinski
Member of Congress                                                               Member of Congress

___________________________________                          ___________________________________
Bobby L. Rush                                                                        Chellie Pingree
Member of Congress                                                               Member of Congress

___________________________________                          ___________________________________
Larry Kissell                                                                            Dennis J. Kucinich
Member of Congress                                                               Member of Congress

___________________________________                          ___________________________________
Marcy Kaptur                                                                          Betty Sutton
Member of Congress                                                               Member of Congress

___________________________________                         
David B. Cicilline                                                                  
Member of Congress                                                              

Below is a press release from the United States Trade Representative today:

USTR NEWS
UNITED STATES TRADE REPRESENTATIVE
www.ustr.gov               Washington, D.C. 20508          202-395-3230

Obama Administration Challenges China’s Unfair Imposition of Duties on American-Made Automobiles

Washington, D.C. – United States Trade Representative Ron Kirk announced today that the United States is challenging China’s imposition of antidumping and countervailing duties on more than $3 billion in exports of American-produced automobiles.  Specifically, the United States has requested dispute settlement consultations with China at the World Trade Organization (WTO) in an attempt to eliminate these unfair duties, which appear to represent yet another abuse of trade remedies by China.  

“As we have made clear, the Obama Administration will continue to fight to ensure that China does not misuse its trade laws and violate its international trade commitments to block exports of American-made products,” Ambassador Kirk said. “American auto workers and manufacturers deserve a level playing field and we are taking every step necessary to stand up for them.  This is the third time that the Obama Administration has challenged China’s misuse of trade remedies.” 

Through this case, the United States is addressing its concerns that China’s duties on imports of American-made vehicles appear to be inconsistent with WTO rules.  Consultations are the first step in a WTO dispute.  Under WTO rules, if parties do not resolve a matter through consultations within 60 days, complainants may request the establishment of a WTO dispute settlement panel. 

This is the latest in a series of enforcement steps the Administration has recently taken to continue to hold China accountable for its WTO commitments.  In two earlier WTO cases, the United States challenged duties that China had imposed to restrict imports of certain steel products and chicken products from the United States.  The United States has also brought actions against China’s export restraints on several industrial raw materials, including rare earths, China’s restrictions on electronic payment services and subsidies to China’s wind power equipment sector.  In each of these matters, the key principle at stake is that China must play by the rules to which it agreed when it joined the WTO.  Those commitments include maintaining open markets on a non-discriminatory basis, and following internationally-agreed procedures in a transparent way.  In addition, the United States previously invoked a China-specific safeguard to address rapidly increasing imports of Chinese passenger and light truck tires.

Background:

Shortly after President Obama decided in September 2009 to impose a safeguard measure against Chinese tire imports, China’s Ministry of Commerce announced that it would initiate antidumping and countervailing duty investigations of imports of American-made cars and sport utility vehicles (SUVs).  Then, in May 2011, China’s Ministry of Commerce issued final determinations in which it found that imports of American-made automobiles had been sold at less than fair value (i.e., “dumped”) into the Chinese market and had also benefited from subsidies.  WTO rules permit imposition of duties on imports of merchandise that are found to be dumped or subsidized, if those imports cause injury to the domestic industry.   However, at that time, China suspended the imposition of duties. 

Subsequently, in December 2011, China began imposing both antidumping and countervailing duties on imports of American-produced automobiles.  The antidumping duties range from 2.0 percent to 8.9 percent, with an “all others” rate of 21.5 percent, and the countervailing duties range from 6.2 percent to 12.9 percent, with an “all others” rate of 12.9 percent.  The specific products affected by the duties are American-produced cars and SUVs with an engine capacity of 2.5 liters or larger.  Last year, the United States exported more than $3 billion of these automobiles to China.

The United States believes that China initiated the investigations without sufficient evidence; failed to objectively examine the evidence; and made unsupported findings of injury to China’s domestic industry.  In addition, China failed to disclose “essential facts” underlying its conclusions; failed to provide an adequate explanation of its conclusions; improperly used investigative procedures; and failed to require non-confidential summaries of Chinese company submissions.

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