Retailers Attack Anti-China Trade Legislation
By James A. Morrissey, Washington Correspondent
The National Retail Federation (NRF) has urged Congress to reject legislation aimed at attacking
international trade with China, charging that the legislation would drive up consumer prices and
would not necessarily save US jobs. In a letter to the House Ways and Means Committee, NRF Vice
President and International Trade Counsel Erik Autor said: “The importance to the US retail
industry of maintaining a constructive trade relationship with China cannot be overstated. China is
an essential source of a wide range of products sold in the United States at retail, and is the
dominant supplier of such basic consumer goods as footwear, clothing, toys, furniture, consumer
electronics and housewares. Any restrictions on Chinese goods will have adverse consequences on the
US retail companies and American consumers who would face fewer product choices and higher prices.”
He pointed out that 80 percent of Chinese exports to the United States are consumer products, and that seven of the top US importers of Chinese goods are retailers. He cited studies showing that increased imports from China in recent years have come at the expense of imports from other countries and that there is no evidence showing the overall increase in the US trade deficit is attributable to China.
Autor said the various bills under consideration would fail to alter the US trade deficit and would not force China to revalue its currency or take other actions that would make US manufacturers more competitive or save US jobs.
US textile manufacturers and others impacted by imports from China take exactly the opposite tack. The American Manufacturing Trade Action Coalition (AMTAC) urged the committee to approve a comprehensive approach to trade with China that would combat what AMTAC says are China’s “predatory trade practices.” Such legislation would include a currency reform act that would brand currency manipulation an unfair trade practice and permit the United States to use its anti-dumping and countervailing laws to combat it. AMTAC also calls for a measure that would address a disadvantage to US manufacturers caused by value-added taxes in other countries that are rebated to their domestic manufacturers. The legislation would direct the US Trade Representative to negotiate a remedy within the World Trade Organization, and if a satisfactory remedy is not achieved, the United States would charge an offsetting border tax.
AMTAC also is calling for legislation that would ensure the safety of US food and consumer products imports from China, adequate enforcement of intellectual property rights and enforcement of environmental and labor standards.
August 28, 2007
He pointed out that 80 percent of Chinese exports to the United States are consumer products, and that seven of the top US importers of Chinese goods are retailers. He cited studies showing that increased imports from China in recent years have come at the expense of imports from other countries and that there is no evidence showing the overall increase in the US trade deficit is attributable to China.
Autor said the various bills under consideration would fail to alter the US trade deficit and would not force China to revalue its currency or take other actions that would make US manufacturers more competitive or save US jobs.
US textile manufacturers and others impacted by imports from China take exactly the opposite tack. The American Manufacturing Trade Action Coalition (AMTAC) urged the committee to approve a comprehensive approach to trade with China that would combat what AMTAC says are China’s “predatory trade practices.” Such legislation would include a currency reform act that would brand currency manipulation an unfair trade practice and permit the United States to use its anti-dumping and countervailing laws to combat it. AMTAC also calls for a measure that would address a disadvantage to US manufacturers caused by value-added taxes in other countries that are rebated to their domestic manufacturers. The legislation would direct the US Trade Representative to negotiate a remedy within the World Trade Organization, and if a satisfactory remedy is not achieved, the United States would charge an offsetting border tax.
AMTAC also is calling for legislation that would ensure the safety of US food and consumer products imports from China, adequate enforcement of intellectual property rights and enforcement of environmental and labor standards.
August 28, 2007
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