4/4/2016
HEADLINES
PERSPECTIVE: Metals Groups Oppose ‘Market Economy’ Designation for China
The Metals Service Center Institute announced it has joined Manufacturers for Trade Enforcement, to oppose China’s designation as a market economy.
Manufacturers for Trade Enforcement is a group of U.S. manufacturing associations which oppose designation of China as a market economy.
Member organizations include the American Wire Producers Association, Alliance for American Manufacturing, American Iron & Steel Institute, Steel Manufacturers Association and nine other groups.
The Industrial Fasteners Institute generally does not take positions in raw materials cases because they have members on both sides.
But IFI managing director Rob Harris told GlobalFastenerNews.com that “in the case of China being granted market economy status, we would be opposed to it as they have not met their obligations required when they were granted WTO membership, so they should continue to be treated as a non-market economy – especially in trade cases.”
In a news release, MSCI noted “growing concern among leaders in the metals industry that this designation would erode accountability and eliminate vital enforcement mechanisms that allow U.S. firms to seek redress for unfair trade practices by Chinese firms.”
“The U.S. and Canadian metals markets have faced significant challenges in 2015 and 2016 due to unfair Chinese trade practices and a glut of Chinese product,” MSCI chair Richard Robinson said.
Robinson also is president of Norfolk Iron & Metal Company.
“As a nation and as an industry we embrace the benefits of international trade, but our nation’s leaders must also ensure our trading partners play by an established set of international rules,” Robinson said. “Giving China market status would eliminate the Department of Commerce’s ability to take China’s practices into account when investigating potential trade remedies.”
China wants market economy status after the 15th anniversary of its accession to the World Trade Organization in December 2016.
U.S. law requires the Department of Commerce to make an MES determination based on established criteria.
The MTE coalition believes China has not met the criteria.
“Policymakers must not only foster strategic trading relationships, they must also allow for expedient and efficient legal action when partners violate the rules,” said MSCI CEO Robert Weidner III. “State support of domestic manufacturing in China has distorted global markets and is hurting the U.S. metals industry. Fair international competition and a level playing field are essential for the global competitiveness of our members. U.S. policymakers should fight China’s request for market economy status.”
The U.S. metals industry accounts for 2.5 million jobs and contributes more than $552 billion – or 3.5% of GDP to the U.S. economy.
For MTE information: TradeEnforcement.org
Founded in 1909, MSCI is a nonprofit metals industry association with 2,400 member locations in the United States, Canada, Mexico and throughout the world. Web: MSCI.org
Share: