NEW YORK China has failed
to comply with its international trade obligations, steel
interests said Wednesday, citing alleged currency manipulation,
export restrictions and government subsidies.
"The current U.S.-China trade
relationship is taking a tremendous toll on U.S.
manufacturers," Kevin Dempsey, senior vice president of public
policy and general counsel for the American Iron and Steel
Institute, said in a prepared statement during a hearing at the
U.S. Trade Representatives Office.
"Over the last decade, the U.S.
trade deficit with China has more than tripled, the United
States has lost millions of manufacturing jobs, thousands of
U.S. factories have been shuttered, and the American steel
industry has been severely disrupted," he added.
The public hearing was held as
part of the U.S. Trade Representatives preparation of an
annual report to Congress on Chinas compliance with World
Trade Organization rules. China joined the WTO in 2001, but
some allege that the Asian nation has yet to abide by the
The yuan remains "significantly
undervalued" compared with the U.S. dollar and other
currencies, John Martin, president of Mar-Mac Wire Inc. and
president of the American Wire Producers Association, said in a
"At the same time, Chinese
industries have achieved major increases in production
capability and quality, productivity, foreign direct investment
and other factors that would normally be expected to cause a
currency to appreciate," he said. "China has repeatedly stated
that it may be willing to consider restraining its manipulation
of the yuan, but the Chinese government has fallen woefully
short of adequately realigning its currency in accordance with
Martin added that Chinas
"discriminatory, steel-specific border measures"including
export taxes on wire rod, coupled with value-added tax rebates
on downstream steel wire and wire productshave hurt U.S.