Trade laws fail to solve problems, critics say, but there’s no other recourse

Do America's trade laws work? Ask the US manufacturers involved in filing five trade cases against Chinese shipments of downstream, wire-rod-based products and they'll tell you it's too early to say ...  although they see positive signs.   Ask critics, and they'll tell you US trade laws have not solved the problem of subsidies and dumping but there's no other recourse.

China is the target of five trade petitions launched last year by U.S. manufacturers of products made from wire rod and other finished steels. Although it's too early to tell whether those cases will prove effective in halting allegedly unfairly traded imports, some positive signs are emerging for domestic suppliers.

The petitioners said that China imposes export taxes on certain steel products like wire rod but none on downstream products commonly used by U.S. industries, even for consumer goods such as shelving and racks in appliances. Although these aren't typical commodities, they are products whose standard grades and sizes can be made anywhere and used by almost anyone.

This combination of factors led to what U.S. industries believed was a concerted effort by Chinese manufacturers and exporters to flood the American market with subsidized products priced at levels below which domestic suppliers could profitably sell the same goods. This import competition, occurring before and in the midst of the great recession, caused domestic producers to lay off workers, shut down production lines, consolidate...

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