Raymond Richman - Jesse Richman - Howard Richman
Richmans' Trade and Taxes Blog
China agrees to modify export subsidies
According to United States Trade Ambassador, Ron Kirk, China has agreed to eliminate or modify its export subsidy program. His office reports:
"I am very pleased that today we have signed an agreement with China confirming full elimination of the numerous subsidies we identified as prohibited under WTO rules. This agreement demonstrates President Obama's commitment to ensuring that American workers, farmers, ranchers, manufacturers, and producers get a fair chance to compete for business around the world, to sell more goods to global consumers, and to bring jobs and other benefits of our trade agreements back home," said Ambassador Kirk. "This outcome represents a victory for the full spectrum of U.S. manufacturers and their workers, given the reach of these Chinese industrial policy initiatives. We are pleased that the WTO dispute settlement mechanism has worked as intended, enabling the parties to reach an appropriate resolution," Ambassador Kirk added.
China's actual actions, however, may not be so sweeping. The same article also reports:
Under the agreement, China confirms that it has taken steps either to eliminate the measures of concern or to modify them to remove any provisions related to export-contingent brand designations and financial benefits.
Journal of Economic Literature:
Atlantic Economic Journal: