USW supports government review of China's nonmarket economy status

United Steelworkers (USW) Intl. President Leo W. Gerard has released the following statement in response to the Department of Commerce's notice that it was seeking public comment on whether China is a nonmarket economy:

"Given that the last review of China's status as a nonmarket economy occurred in 2006, today's request is most appropriate. While more than a decade has passed, the USW's experience with China makes it clear that its nonmarket economy continues. Granting China market economy status would be contrary to the facts, as well as serving to devastate domestic producers and workers.

"The preferential status China is seeking would allow them to dump more unfairly priced products into the market, while claiming to abide to market economics. Nobody who understands China's economic policies, and deals with the reality of those policies in the marketplace, can honestly argue that China is a market economy.

"A provision in China's original accession agreement to the World Trade Organization allowed member countries to automatically treat China as a nonmarket economy. It expired last December. Since the expiration, the only change was that the United Sates would utilize the existing statutory tests that determine whether a country is operating as a market economy. China continues to fail our legal test, providing no reason to grant it favorable, but undeserved, treatment under trade law.

"If other countries decide to disregard the facts and bow to China's political pressure to grant them market economy (MES) status, we must evaluate whether new tools are necessary to address the market impact of those decisions. How other countries treat the unfairly traded imports from China has an impact on both our exports to and our imports from those marketplaces.

"The United States is on firm ground here. Nine of the top 10 users of the antidumping remedy continue to treat China as a nonmarket economy. The factual analysis and update that Commerce is undertaking will make it clear that China is not operating according to free market principles, which is the foundation of the world trading system.

"Domestic producers and workers in steel, aluminum, paper, rubber, and many other sectors have suffered the consequences of China's policies. Ignoring the facts now will only devastate America's economy."