Growing Concerns About Unfair Trade Practices
Opposition increases against China’s designation as a market economy.
Posted: March 30, 2016
The Metals Service Center Institute (MSCI; Rolling Meadows, IL) has joined Manufacturers for Trade Enforcement, a group of leading U.S. manufacturing associations that will oppose China’s designation as a market economy. There is 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,” said Richard Robinson, chairman of MSCI and president of Norfolk Iron and Metal Company (Norfolk, NE). “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. 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 claims it should be accorded market economy status (MES) after the 15th anniversary of its accession to the World Trade Organization (WTO) in December 2016. U.S. law requires that the Department of Commerce make an MES determination based on established criteria, which the coalition and MSCI believe China has not met.
“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 president and chief executive officer M. 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 nearly 2.5 million jobs and contributes more than $552 billion to the U.S. economy (3.5 percent of GDP). “In joining Manufacturers for Trade Enforcement, we continue our fight for the future of our industry — and for the thousands of families that depend on jobs in metals mills and service centers across North America,” added Weidner.
To learn more about Manufacturers for Trade Enforcement, please click here.
Founded in 1909, the Metals Service Center Institute is a nonprofit metals industry association based in Rolling Meadows that serves more than 2,400 member locations in the United States, Canada, Mexico and throughout the world.
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