Use Import Duties to Control Chinese Steel Exports to the US

E-Mail to Congress:

EIN News says, "Steelworkers Want Obama to Sue China Over Green Energy Subsidy. A steel workers union in the US has filed a trade case identifying "illegal" Chinese practices that threaten America's renewable energy sector and asked the Obama Administration to sue Beijing over its green energy subsidies, a demand swiftly supported by a key Senator. (indiatimes.com)".

ABSOLUTELY! The free-trade policy of the United States is based on a level playing field. Whether we should have a free-trade policy is controversial, but we have it for many years, and as long as it exists, we and our trading partners should be living by it.

The limitation on "free-trade" is that no subsidies should be involved. When a subsidy by a foreign exporter is recognized, the US has the right and obligation to apply in import duty to at least counteract the foreign subsidy. Notice that no "legal suit" is necessary. Good business practice merely involves advising the foreign exporter that he is now being faced with a specific import duty into the United States and the reason thereof.

When I reached this point, I thought it would be a good idea to find out what agency of the United States government is responsible for establishing and enforcing custom duties. While this seemed like a relatively simple question, it took me at least three quarters of an hour wandering around in the Internet to determine that the responsibility of enforcement falls under the International Trade Administration (ITP) of the US Department of Commerce. I never was able to learn whether the ITP has the power to establish a custom duty, in addition to enforcing it. The ITP answers Internet questions concerning dumping, countervailable subsidies, and how dumping or subsidization is remedied, but the answers are generally nonspecific and never contain any indication of a mathematical import duty level.

I suppose there may be an answer somewhere, but it is well disguised and consistent with my previous opinion that government employees generally do not want to take responsibility for anything. This lets all kinds of things fall through the cracks.

Having seen continuing reports on how the Chinese government operates, I have concluded that the US has no chance in world economics competition, as long as it maintains a wishy-washy attitude of responsibility and a confused bureaucracy.