China is hopeful that some of its steel products will be exempt
from controversial United States steel tariffs that have infuriated
major US trading partners.
The Chamber of Commerce for the Import and Export of Metals,
Minerals and Chemicals is organizing Chinese companies to apply for
exemption from US steel tariffs for some of their products, said
Liu Danyang, an official with the Ministry of Foreign Trade and
Economic Cooperation (MOFTEC).
Liu said MOFTEC is studying the list of 61 steel products that the
United States has announced is exempt from its controversial
tariffs on steel imports.
These 61 products were excluded because they are not sufficiently
available from US producers and because those products would not
undermine the effectiveness of the American safeguard on steel
products, said a written statement from the US Department of
Commerce.
The 61 exemptions are the first set of exclusions with more to be
announced this week, a US trade official said.
Liu expected some Chinese products will be exempt but said the
amount will be tiny. The 61 exemptions amount to about 1 per cent
of the steel covered by the tariffs.
An
official with MOFTEC's world trade department confirmed that China
will renew its request on June 24 for a WTO panel to examine its
charge that the US steel tariffs break international trade
rules.
The meeting was originally scheduled earlier but delayed until June
24 because Norway and Switzerland will file similar requests at
that time, said the MOFTEC official, who did not disclose his
name.
The United States used its right under WTO rules and on Friday
blocked China's first request to set up an independent panel of
experts to rule on the legality of the steel measures.
The United States will not be able to oppose the second request and
the three-member panel must be established automatically.
China follows in the footsteps of the European Union, South Korea
and Japan to lodge the request, and others are preparing to follow
suit in what is shaping up to be one of the trade body's most
bitter conflicts.
The dispute centres on Washington's three-year introduction of
"safeguards" on some imported steel products to help its flagging
steel industry.
The measures, which took effect on March 20, takes the form of
increased duties of between 8 and 30 per cent and tariff rate
quotas.
Trade partners with the United States from Europe, Latin America
and Asia have pressed for the removal of the measure, slamming the
action as protectionist and in violation of US commitments to WTO
rules.
The EU, Japan, South Korea and China argue that US industries were
not seriously depressed or threatened by imports.
China also argues that as a developing country, its imports of
certain steel products should be excluded from the US measure.
The EU on Monday secured the establishment of a panel, while South
Korea and Japan plan to ask for a second time on June 14, when
Norway and Switzerland will each also lodge an initial request.
Brazil and New Zealand are at an earlier stage in the procedure
that could also lead to panel requests.
(China Daily June 11,
2002)