Obama Signs Countervailing Bill

0 Shares

WASHINGTON (UPI) — President Barack Obama Tuesday signed a trade law that allows the Commerce Department to impose countervailing duties on non-market economy goods.

In a ruling that applied most prominently to China and Vietnam, a U.S. district court in December ruled the department could not impose countervailing duties on goods from a non-market economy.

The law signed Tuesday is a quick response to that ruling. The new law “clarifies that the countervailing duty law can be applied to subsidized goods from nonmarket economy countries,” the White House said in a statement.

In addition, the law allows the Commerce Department to “adjust antidumping duties applied to goods from nonmarket economy countries when countervailing duties are applied to the same goods,” the White House said.

China has denied that it unfairly subsidizes its export companies. Chinese authorities have also said that subsidies for domestic firms have proliferated since the financial crisis struck.

China has pointed to the bailouts for U.S. automakers Chrysler and General Motors as examples of government subsidies.

Earlier this month, Chinese Commerce Minister Chen Deming called the countervailing bill that was wending its way through Congress, “out of line” with U.S. and international laws.

“Let me be clear: There are no prohibitive subsidies handed down by the Chinese central government,” Chen said.

UPI - United Press International, Inc.

Since 1907, United Press International (UPI) has been a leading provider of critical information to media outlets, businesses, governments and researchers worldwide.

Join the Discussion

Comment Policy: We encourage an open discussion with a wide range of viewpoints, even extreme ones, but we will not tolerate racism, profanity or slanderous comments toward the author(s) or comment participants. Make your case passionately, but civilly. Please don't stoop to name calling. We use filters for spam protection. If your comment does not appear, it is likely because it violates the above policy or contains links or language typical of spam. We reserve the right to remove comments at our discretion.