THOMPSON, U.S. TRADE AMBASSADOR FROMAN, BIPARTISAN COALITION LAUNCHES CHALLENGE TO CRACK DOWN ON CHINA’S QUESTIONABLE TRADE PROGRAM

Washington, D.C. – U.S. Rep. Mike Thompson (CA-5) today joined United States Trade Ambassador Michael Froman and a bipartisan coalition of House members to announce that the United States has launched a challenge at the World Trade Organization (WTO) to crack down on a questionable Chinese export subsidy program. Specifically, the U.S. is pursing dispute settlement consultations with the Government of China concerning their "Demonstration Bases-Common Service Platform" program that seems to provide prohibited export subsidies such as cash grants and free services to manufacturers and producers located throughout China. This unfair Chinese program is harmful to American workers and American businesses of all sizes.

"China's actions are damaging our international marketplace, undercutting American businesses, and hurting workers in communities across our country," said U.S. Rep. Mike Thompson (CA-5). "This case is about making sure the playing field is level and that China operates under the same fair and basic set of rules that American businesses and workers must abide by."

"President Obama has made vigorous enforcement a touchstone of his trade agenda," said Ambassador Froman. "Under the President's leadership, USTR will continue working tirelessly to ensure that China and all WTO Members play by the rules so we can grow solid, middle-class jobs here in America. American workers, farmers, manufacturers, and businesses rank among the most productive and innovative in the world, and where there is a level playing field they can compete and win. This Administration is dedicated to ensuring that they get all the economic opportunities we've negotiated under our trade agreements."

Through the questionable export subsidy program, China provides free and discounted services as well as cash grants and other incentives to enterprises that meet certain export performance criteria. The program subsidizes enterprises from one of seven specific economic sectors: (1) textiles, apparel and footwear; (2) advanced materials and metals (including specialty steel, titanium and aluminum products); (3) light industry; (4) specialty chemicals; (5) medical products; (6) hardware and building materials; and (7) agriculture.

Today's action represents a vigorous effort hold China to their WTO obligations. Export subsidies provide an unfair advantage to a vast array of Chinese exporters and are expressly prohibited under WTO rules. Consultations are the first step in the WTO dispute settlement process. If the United States and China are not able to reach a mutually agreed solution through consultations, the United States may request the establishment of a WTO dispute settlement panel.

Congressman Mike Thompson is proud to represent California's 5^th Congressional District, which includes all or part of Contra Costa, Lake, Napa, Solano and Sonoma Counties. He is a senior member of the House Ways and Means Committee. Rep. Thompson is also a member of the fiscally conservative Blue Dog Coalition and chairs the bipartisan, bicameral Congressional Wine Caucus.

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