A round-up on the Administration’s decision to apply countervailing duties to respond to China’s economic subsidies.
On CNBC, the NAM’s Frank Vargo, vice president, international economic affairs, appeared on CNBC for a discussion of the action. The video is here. Also interviewed is Robert Hormats, Goldman Sachs International vice chairman.
Vargo said this action makes proper use of WTO rules, which serve to head off protectionism by providing recourse to U.S. companies affected by Chinese subsidies.
“What this can lead to is the Chinese getting tired of this and saying, you know, the time has come for us to stop providing these subsidies. And they don’t have to anymore. They are now the world’s second largest exporter. They don’t need subsidies.”
The specific case in question concerns China’s subsidies of coated paper products, i.e., catalogs, brochures, etc. We note that this case from 2003 still continues:
China began levying five-year, antidumping duties on Japanese and South Korean art paper imports Wednesday, the official Xinhua News Agency reported.
Japanese and South Korean exporters of the coated paper — used mainly for color pictorials, advertisements and packaging — will reportedly be obliged to pay duties ranging from 4% to 71%, Xinhua said.
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