CITAC SUPPORTS SECTION 301 PROCESS TO INVESTIGATE ALLEGATIONS ON CHINA'S RARE EARTH METALS AND GREEN ENERGY POLICIES

 

Washington, DC –  October 28, 2010 (Washington, DC) – The Consuming Industries Trade Action Coalition (CITAC) issued the following statement on the initiation of a Section 301 investigation by the U.S. Trade Representative (USTR) into allegations by the United Steel Workers (USW) Union that China has violated WTO obligations in the rare earth metals and “green energy” areas: 

“CITAC has consistently favored trade policies that avoid unnecessary damage to U.S. industries that rely on imported raw materials and consumer goods.  If China has acted to damage U.S. downstream industries by restricting supplies of needed raw materials, or by subsidizing production, the WTO process is the best way to address those issues.  We endorse the decision by the Obama Administration last week to investigate these serious allegations thoroughly.

“The Section 301 process that the USW petition employs will not lead to the arbitrary remedies that characterize the antidumping and countervailing duty laws, which are in serious need of reform.  The Office of the U.S. Trade Representative will conduct its investigation over the next 90 days and then determine what steps are appropriate in the national interest.  CITAC supports this process.”