WASHINGTON, D.C. – Yesterday, Congressman Mike Michaud, Chairman of the House Trade Working Group, joined 26 of his colleagues in sending a letter to President Obama urging him to take action against China’s unfair trade practices that seek to exclude U.S. autos from the Chinese market.

In the letter, Michaud and his colleagues expressed their concern over China’s levying of anti-dumping and countervailing duties on imports from the U.S. of some vehicles with engine capacities over 2.5 liters.  They urged the Administration to bring a WTO case against these retaliatory duties, which are likely in violation of the WTO Antidumping Agreement and the Agreement on Subsidies and Countervailing Measures.  Initiating a dispute at the WTO is the formal process through which U.S. auto manufacturers can get relief from China’s illegal tariffs.

“China has been violating the WTO rules since it first joined the organization 10 years ago,” said Michaud.  “Their constant disregard for international trade law cannot be tolerated, and it is critical that the Administration respond to China’s illegal tariffs just as aggressively as China applies them.  American companies are top tier, but they can’t compete with China’s cheating.” 

The full text of the letter to President Obama can also be found below.

February 13, 2012

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,