House Trade Subcommittee Announces March 15, 2007 Hearing on Application of CV Duties to NME Countries
The House Ways and Means Trade Subcommittee has issued an advisory announcing that it will be holding a hearing on March 15, 2007 on the application of countervailing (CV) duties to unfairly subsidized and injurious imports from nonmarket economy (NME) countries (such as China), with a focus on H.R. 1229, the "Nonmarket Economy Trade Remedy Act of 2007."
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H.R. 1229, which was introduced in the House of Representatives on February 28, 2007, would amend title VII of the Tariff Act of 1930 to provide that the provisions relating to CV duties apply to NME countries, and for other purposes.
ITA is Considering Whether to Apply CV Duty Law to Imports from China
The Trade Subcommittee notes that in October 2006, a petition was filed requesting the initiation of a CV duty investigation on coated free sheet (CFS) paper from China which the ITA subsequently initiated. (See ITT's Online Archives or 11/28/06 news, 06112835, for BP summary of ITA's notice initiating the CV duty investigation on coated free sheet paper from China.)
In December 2006, the International Trade Administration (ITA) requested comments on whether it should apply the CV duty law to imports from China. The ITA stated that it intends during the course of the present CV duty investigation on coated free sheet paper from China to determine whether the CV duty law should now be applied to imports from China. (Since at least 1986, the ITA has exercised its discretion to not apply the CV duty law to NME countries, such as China and Vietnam.) (See ITT's Online Archives or 12/19/06 news, 06121925, for BP summary of ITA request for comments.)
China Has Appealed ITA's Initiation of CV Duty Investigation to CIT; No Ruling Yet
The Subcommittee further notes that China has appealed the ITA's initiation of a CV duty investigation to the U.S. Court of International Trade (CIT) and is requesting a preliminary injunction. According to the Subcommittee, the CIT has not yet ruled on that request, although it did deny China's motion for a temporary restraining order that would have prevented the ITA's investigation.
U.S. Has Requested WTO Dispute Settlement Consultations with China
In addition, the Subcommittee notes that it is widely recognized that China has a large number of subsidy programs that distort the Chinese market and trade with the U.S., and on February 2, 2007, the U.S. Trade Representative (USTR) requested World Trade Organization (WTO) dispute settlement consultations with China regarding certain prohibited subsidies.
(See ITT's Online Archives or 02/22/07 news, 07022210, for BP summary of USTR request for comments regarding its WTO consultations with China regarding alleged prohibited subsidies.)
- comments due by close of business, March 29, 2007 (see Advisory for instructions on submitting comments)
Trade Subcommittee Advisory (TR-2, released 03/07/07) available at http://waysandmeans.house.gov/hearings.asp?formmode=view&id=5601.
H.R. 1229 available at http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=110_cong_bills&docid=f:h1229ih.txt.pdf.