US may Launch WTO Complaint Against Chinese Aluminum Subsidies
The Obama administration may file a complaint against Chinese subsidies on its aluminum products, which is likely to be submitted to the World Trade Organization (WTO) on Thursday. This step is expected to further erode the crumbling trade relationships between the two countries.
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The complaint will be filed by the US Trade Representative's office and is expected to list "artificially cheap loans" from Chinese banks as a cause of concern. The complaint is also likely to cite supply of artificially low price inputs such as coal, alumina, and electricity to Chinese aluminum manufacturers.
The US has expressed its concerns that such imports from China are creating excess capacity. The country has also blamed China for hurting American industry and workers with its subsidies to Chinese aluminum industry.
In October last year, two US senators from Ohio, along with six other senators, had asked the government to launch a WTO complaint against Chinese practices. Ohio is one of the biggest manufacturing hubs for the US aluminum industry.
Senator Sherrod Brown, an Ohio Democrat, said in a statement issued late on Wednesday, "When China drives down aluminum costs by cheating, Ohio workers and manufacturers pay the price."
China is one of the most prolific aluminum producers in the world, accounting for more than half of the entire global production of aluminum.
It is expected that the United States will pursue the consultation with China for solving the issue. The upcoming complaint will be the 16th complaint filed by the Obama administration over the past eight years.