USW Files Trade Petition Against China

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One day after it was reported that America’s last major incandescent light bulb factory would be shuttered because of the evolution toward more energy efficient bulbs, which are much cheaper to manufacture in China, the United Steel Workers Union announced the filing of a trade petition against China. The USW claims that Beijing has illegally subsidized exports of clean energy equipment, putting American manufacturers at an extreme disadvantage.

The complaint alleges that China’s mercantilist practices have propelled China to the world’s leader in the industry, threatened the future of America’s alternative and renewable energy sectors, cost countless American jobs and added to America‘s already unsustainable trade deficit.

“Green jobs are key to our future,” Leo W. Gerard, International President of the USW, said in a press release. “Right now, China is taking every possible step – many of them illegal under international trade laws – to ensure that it will control that sector. America can’t afford to cede more of its manufacturing base to China.”

According to the massive, 5,800 page complaint filed with the U.S. Trade Representative’s office, China’s illegal, mercantilist practices in five key areas have put American manufacturers at a serious disadvantage.

One of the ways in which the Chinese government has propped up its alternative energy sector is by placing tight restrictions on the export of rare earth elements, which many green technologies depend on. China currently produces over 90 percent of such materials. Through export quotas, taxes and licensing restrictions, China has provided those looking to make entry into the sector and incentive to offshore production to the Asian nation.

China has also promoted its domestic alternative energy industry by providing homegrown manufacturers with billions in subsidies, performance requirements for investors, blatant discrimination against foreign companies in the industry and domestic content requirements.

“It’s a national priority to reduce our dependence on foreign energy supplies,” Gerard said. “But if all we do is exchange our dependence on foreign oil for a dependence on Chinese alternative and renewable energy production equipment, we will have traded away our nation’s energy, economic and job security.”

Under the current law, the president will have 45-days to respond to the petition, and a year to complete an investigation into the matter, although he could postpone any decision.

“This case draws a line in the sand,” Gerard said. “The petition presents comprehensive facts and data regarding China’s illegal acts under international trade rules. We can’t rely on unending diplomatic niceties and non-productive photo opportunities masquerading as serious talks. We’re hemorrhaging jobs, seeing our bilateral trade deficit skyrocket and jeopardizing our future.

“Our message will be quite clear. Enough is enough. It’s time to fight for our future.”

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