THE FIGHT BETWEEN US AND CHINA. WHO WILL WIN? WTO DECIDES
In these months it is developing a tough battle in the field of international trade that can affect the entire scenario of foreign trade. Since China entered the World Trade Organization (WTO) in 2001. There is an ongoing dispute between China and the United States that affects all international trade. The dispute began with a disagreement regarding some export subsidies by the Chinese government, although Beijing has always claimed obey all regulations on foreign trade.
FIRST PROBLEMS BETWEEN USA AND CHINA
Chinese authorities in April reaffirmed their commitment to the WTO, after resolved a trade dispute with the United States in Geneva.
«China will continue to promote the transformation and upgrading of foreign trade based on WTO rules,» said the Chinese Ministry of Commerce said in a statement.
The official statement was issued days after China and the United States signed an agreement of understanding in Geneva to resolve one of their trade disputes, specifically a Chinese program on export subsidies.
According to a statement from the US Trade Representative Michael Froman, China agreed to end a program that provided export subsidies to Chinese companies in seven sectors, after Washington questioned this practice to the WTO in Geneva in past.
United States considered that the program provided an «unfair» advantage to Chinese exporters and was prohibited by the rules of the World Trade Organization practice.
«China has always complied with the WTO rules,» he defended the Chinese ministry said in the statement, without giving details on the agreement.
The decision of the Chinese government has been seen as an attempt to Beijing to iron out differences with Washington trade, although disputes still remain open.
Since China entered the WTO in 2001, has received multiple complaints about its exports, other countries have considered sold below the cost of production.
A clear example is the dispute over steel exports, which have focused the latest discussions between China and the European Union (EU).
Last March the European Commission announced the creation of a prior surveillance system for steel products in order to detect and react when import trends, such as the Chinese dumping, threaten the European sector.
CHINA STRIKES BACK
But last June the tables turned and it was China that required the United States to respect the rules of the WTO. In a letter from the deputy director general of the Bureau of Fisheries, Ministry of Agriculture of China, Cui Lifeng, the National Directorate of Oceanic and Atmospheric Research of the Ministry of Commerce, it demanded that the Americans assume a more restrained policy on trade sea products.
«We would be very grateful if the US assume a more restrained policy to avoid unnecessary barriers to trade, in formulating and implementing new rules, these should be consistent with WTO rules,» reads the letter.
US implements new rules for importing seafood to come into force in September 2016.
Typically, USA sold its seafood to Japan and Southeast Asia at high prices, while importing cheaper fish, which requires that imported fish cope 93 percent of the local market.
Again, the WTO must resolve the situation.