Fighting to protect manufacturing jobs for Wisconsin workers, Congresswoman Tammy Baldwin has joined in a bipartisan letter to President Obama asking the Administration to challenge China's unfair and anticompetitive auto trade practices by initiating a World Trade Organization (WTO) dispute.
As of December 15th, 2011, China imposed new antidumping and countervailing duties which increased the costs by 21.5% and 12.9% respectively on American-made vehicles. This action comes on top of already existing duties and taxes that add 25% or more to the cost of American vehicles in China, further pricing them out of the market.
"When American workers compete on a level playing field, we come out on top," said Baldwin. "For too long and too often, American manufacturers have suffered because of illegal and unfair Chinese trade practices. We cannot sit by and allow China to play by its own set of rules. I call on the President to further his support for U.S. manufacturing jobs by asking the WTO to challenge these unfair trade barriers," Baldwin said.
This action is part of a long pattern of unfair trade practices by the Chinese government. A recent report from the Alliance of American Manufacturing noted that since 2001, Chinese government subsidies to that country's auto parts manufacturers have increased 870 percent. Over the same period, the U.S. trade deficit with China in auto parts has ballooned from $1.03 billion in 2001 to $9.95 billion in 2011. In 2001, China entered the WTO and was granted permanent normal trade relations with the U.S., a move Baldwin strongly opposed.