China to nix some steel subsidies by Jan. USTR [UPDATE]

Nov 29, 2007 | 01:33 PM |

The Chinese government has agreed to eliminate subsidies on a number of industries, including steel, within a month, U.S. Trade Representative Susan Schwab said Thursday.

The U.S. government had challenged the subsidy programs as illegal under World Trade Organization rules. It will now suspend its WTO case, which will be withdrawn once the programs are eliminated, the USTR office said.

China agreed to abolish 12 subsidy programs impacting steel, wood products and information technology, among others, by Jan. 1. "This outcome represents a victory for U.S. manufacturers and their workers," Schwab said in a statement.

Some U.S. manufacturers applauded the news.

"China is to be commended for recognizing that these subsidies were illegal and for acting responsibly to eliminate them," John Engler, National Association of Manufacturers' president and chief executive officer, said. The NAM had supported the WTO case and had lobbied for an end to "trade-distorting practices" by China, including subsidies and an allegedly undervalued yuan.....





Latest Pricing Trends

Poll

Is severe weather affecting your business?

Yes
No


View previous results