19 October 2010
U.S. Officials Investigating China’s Green Technologies Trade
Washington — U.S. Trade Representative Ron Kirk announced October 15 that the United States has initiated an investigation of China’s practices affecting trade and investment in green technologies.
The investigation was initiated in response to a petition filed by the United Steelworkers (USW) union on September 9 under Section 301 of the 1974 Trade Act. The petition alleges that China employs a wide range of policies that unfairly support its domestic producers of wind and solar energy products, advanced batteries and energy-efficient vehicles, among other products. China’s actions are inconsistent with its obligations as a member of the World Trade Organization (WTO), according to the petition.
Section 301 directs the president to identify countries that are engaging in unfair trade practices, and to take trade actions against those countries to remedy the problem, including sanctions if necessary. The administration can initiate a Section 301 case itself, and it can accept outside petitions. The administration can take action under Section 301 if a country is denying the United States its rights under a trade agreement or engaging in unjustifiable, unreasonable or discriminatory acts, policies or practices that burden or restrict U.S. commerce. An act can be found unreasonable even if it does not violate the specific rules of a trade agreement, as long as it is “unfair and inequitable.”
According to the petition, these policies include export restraints, prohibited subsidies, technology-transfer requirements and discrimination against foreign companies and imported goods causing serious prejudice to U.S. interests. The petition further alleges that China’s policies have caused the annual U.S. trade deficit in green-technology goods with China to increase substantially since China joined the WTO in December 2001.
“We take the USW’s claims very seriously, and we are vigorously investigating them,” Kirk said. “For those allegations that are supported by sufficient evidence and that can effectively be addressed through WTO dispute settlement, we will vigorously pursue the enforcement of our rights through WTO litigation.”
In light of the number and diversity of the acts, policies and practices covered by the petition, and after consulting with the union, the U.S. Trade Representative decided to delay for up to 90 days the request for consultations with the government of China for the purpose of verifying and improving the petition.
Because the issues covered in the investigation involve U.S. rights under the WTO agreement, any U.S. request to China for consultations will be made under the WTO Understanding on Rules and Procedures Governing the Settlement of Disputes. If consultations fail to result in a mutually acceptable resolution, the U.S. Trade Representative will request the establishment of a WTO panel to resolve the dispute.
(This is a product of the Bureau of International Information Programs, U.S. Department of State. Web site: http://www.america.gov)
