May 15, 2017

MSCI-Backed Coalition Tells U.S. Commerce To Department To Preserve Non-Market Economy Status For China

The Manufacturers for Trade Enforcement (MTE), a coalition representing more than one million workers in the aluminum, steel, cement, chemical, textile, and other manufacturing industries that the Metals Service Center Institute (MSCI) is a member of, submitted comments to the U.S. Department of Commerce supporting the department’s continued approach of a criteria-based assessment of market economy treatment for any country. 

As part of its comments, the coalition argued that China does not currently satisfy the statutory requirements to be considered a market economy. The comments said:

“Fair international competition and a level playing field are essential for the global competitiveness of U.S. manufacturers. Effective and predictable trade enforcement mechanisms must include the accurate assessment of and response to distortions from state-run or other non- market economies, which risk endangering U.S. jobs and the economy. Because China’s economy does not meet the basic requirements set forth by the Department of Commerce for a functioning market economy, the Department should continue to find – as it did in its most recent review of China’s nonmarket economy status completed in 2006 – that the Chinese economy continues to meet the definition of a non-market economy.”

The coalition also argued that preserving non-market economy status for China “is vital for U.S. manufacturers seeking redress for unfair trade practices by Chinese firms.

The MTE submitted the comments, which are available here, in response to the Commerce Department’s recent inquiry into the continued treatment of China as a non-market economy under existing antidumping and countervailing duty laws. Inside U.S. Trade discussed the Coalition’s submission in a news story, available to subscribers here