US Trade Representative Michael Froman has announced that the US has launched a new trade enforcement action against China at the World Trade Organization (WTO) concerning China’s export duties on nine different raw materials, including tin, antimony, cobalt, copper, graphite, lead, magnesia, talc and tantalum. According to Mr. Froman, when China joined the WTO, China agreed to eliminate its export duties on these products, but it has failed to follow through on this commitment.
The Office of the US Trade Representative (USTR) stated that the export duties China imposes provide substantial competitive advantages for Chinese manufacturers by making them more expensive for the US manufacturers that rely on these raw materials to produce their downstream goods. These nine raw materials are key inputs into high-value Made-in-America products in vital industrial sectors, including aerospace, automotive, electronics, and chemicals. China’s export duties provide an unfair competitive advantage to China at the expense of American workers and manufacturers, according to the Office of the USTR.