[Gasification] Chinese subsidy ends

[LINVENT at aol.com]

For those who like shopping at the Waltons' China Mart:



  
  
 Patricia Mears
 Director, International Commercial Affairs
  
  

 Victory: NAM Succeeds in Pressuring China to End Export Credit Subsidy
  
 Thanks to all the hard work by NAM members, recently the NAM realized a 
major success in the subsidy area — when China announced it would end an export 
credit subsidy. The Central Bank of China had been providing discounted loans to 
large exporters, allowing them to export their products for far less than 
they otherwise would have had to charge.
  
 The NAM has been relentless in pressing for a more level trade relationship 
with China, focusing on currency, subsidies and intellectual property 
protection. It has been urging the Bush Administration to seek out those subsidies and 
bring a case to the WTO that would require China to stop its trade-distorting 
subsidies. A favorable WTO ruling would compel China to eliminate those 
subsidies or face penalties on its exports.
  
 When China joined the WTO in 2001, it agreed to abide by the same rules as 
everyone else concerning export subsidies. But NAM members have continued to 
see Chinese products sold here for less than the cost of raw materials, meaning 
that the products are being dumped or subsidized by the Chinese government.
  
 A few weeks ago the Administration did what the NAM had been asking for — it 
filed a WTO case specifying specific subsidies. These subsidies offer 
significant benefits and are available for all products made in China, including, for 
example, steel, wood, paper and other manufactured products. The companies 
receiving many of these subsidies accounted for nearly 60 percent of China’s 
exports of manufactured goods in 2005.
  
 In consultations with the U.S. government after the case was filed, the 
Chinese government just announced the termination of one of those subsidy programs 
— the one providing discounted loans to large exporters. The NAM applauds 
this action, and hopes the termination of this subsidy indicates China’s 
willingness to withdraw other subsidy programs identified in the recent WTO case. 
However, if China does not follow its obligations, the NAM has told the 
Administration it wants quick handling of the WTO case to compel their termination.
 
 In another welcome development that had been sought by the NAM, Deputy U.S. 
Trade Representative Karan K. Bhatia recently told Congress that U.S.-China 
relations are entering a new phase in which China “will be held fully 
accountable for its WTO obligations as a mature trading partner and will be expected to 
play a greater role in strengthening the global trading system.” 
  
 Your support has been extremely instrumental in getting China to end its 
illegal subsidies. By working together, members of the NAM present a strong and 
effective voice. If you’re not already a member of the NAM, you should activate 
your membership today so you, too, can be well represented in Washington. 
Call us today at (800) 736-6627.




Sincerely,
Leland T. Taylor
Leland T."Tom" Taylor
President
Thermogenics Inc.
7100-F 2nd St. NW Albuquerque, NM 87107
Phone:505-463-8422 Fax:505-268-9206 (call first)
Web:thermogenics.com



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