China, US to Hold Talks on Steel Tariffs This Week

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Last updated at: (Beijing Time) Wednesday, March 20, 2002

China, US to Hold Talks on Steel Tariffs This Week

China will hold talks with the United States this week on US steel tariffs as Beijing prepares to make its first complaint to the World Trade Organisation if talks failed.

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China will hold talks with the United States this week on US steel tariffs as Beijing prepares to make its first complaint to the World Trade Organisation if talks failed.

A Chinese delegation was scheduled to depart for Washington on Wednesday for the talks, a foreign trade ministry spokesman said.

China called for talks last week after the United States said it would slap tariffs of up to 30 percent on a range of foreign steel imports from Wednesday to help its domestic industry.

A number of US trading partners -- including the European Union, Japan, South Korea and Brazil -- have challenged the action and asked the United States for consultation under the WTO.

Chinese officials said last week they hoped talks could resolve the issue but China, a WTO member since December, reserved the right to make a formal complaint to the trade body.

Official at the trade ministry said that China had expressed "deep regret" over the US stance on the issue.

Chinese academics said Beijing could seek compensation through lower US tariffs or increased imports of its products.

Foreign Trade Minister Shi Guangsheng said last week the tariffs would hit US$350 million in Chinese steel sales annually.

China exported about 700,000 tonnes of steel products worth more than US$300 million to the United States last year, according to industry estimates.

It is the world's biggest manufacturer of steel but is still a net importer because domestic demand for high-end products far outstrips supply.

Chinese officials have already met officials of the US Trade Representative office and sent a letter to express Beijing's opposition to the US tariffs.

US raises tariffs on several imported steel

The United States was at loggerheads with its key war allies Tuesday, May 5, after imposing tariffs of up to 30 per cent on steel imports, threatening a damaging trade dispute.

The Bush Administration said that it was justified in acting to protect the ailing US steel industry. Thirty-one American steel firms have gone bankrupt in the past four years. The industry blames the decline on the unchecked influx of cheap foreign steel.

European Union leaders vowed swift retaliation and gave warning that the global economy would suffer. Romano Prodi, President of the European Commission, told President Bush before the announcement Tuesday that steps would have to be taken in response.>>details

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