Original Press Release
NAM Applauds Lavin's Comments on China CVD Case
Press release date: April 2, 2007
Vargo Calls Decision "A Rifle-Shot Action"
WASHINGTON, D.C., April 2, 2007 - Speaking before members of the National Association of Manufacturers, the Department of Commerce's Undersecretary for International Trade Frank Lavin said the decision to apply U.S. anti-subsidy law to imports from China was merited by the facts of the case and by the department's ability to identify subsidies within China.
"The decision is a rifle-shot action that allows Commerce to focus on specific areas of China trade that are unfair, mitigating pressures for across-the-board actions," said Frank Vargo, the NAM's vice president for international economic affairs.
Lavin stressed that the Department's use of anti-subsidy measures to counter Chinese subsidies represented a new tool to address unfair trade practices, but did not presage a worsening of U.S. - China trade relations. He said that the countervailing duty action had to be viewed in the context of the Administration's overall trade agenda with China which also relies heavily on consultations, WTO actions and U.S. trade promotion.
"The undersecretary's comments show a continuing effort by the Commerce Department to hold China accountable for subsidizing their exports," Vargo said. "American manufacturers have long pointed to these subsidies as unfair trade practices and it's refreshing to see our government moving ahead on this.
"Trade-distorting subsidies should not be tolerated, no matter what country employs them," Vargo said. "The Commerce Department's action doesn't result in punitive tariffs, and is limited to that level of import duty needed to offset the subsidy that shouldn't have been there in the first place."
An audio file of Undersecretary Lavin's comments can be found at: nam.org/temp/LAVIN.MP3
CONTACTS: J.P. FIELDER (202) 637-3089; FRANK VARGO (202) 637-3144