U.S. House considers Trade Rights Enforcement Act

Today the U.S. House of Representatives is considering legislation to crack down on China and other countries that illegally subsidize their companies to give then a competitive advantage over U.S. manufacturers. The U.S. Trade Rights Enforcement Act (HR 3283) would provide various mechanisms to ensure that China and other countries abide by their previous trade commitments.

The most significant provision would allow the U.S. to slap countervailing duties on nonmarket economies for illegally subsidizing their companies. China, a nonmarket economy, has evaded actions under the U.S. countervailing duty trade laws because current law only allows actions against market economies.

Commenting on the legislation, U.S. House Small Business Committee Chairman Don Manzullo (R-IL), who will vote in favor of the legislation, said, "This is significant legislation that will have a direct impact on China's dealings with its companies and provide a more level playing field for U.S. manufacturers competing with China. China's leaders will think twice about illegally subsidizing their companies when they know they could face countervailing duties when they sell to the U.S."