SPI Statement on WTO Case on China's Prohibited Subsidies

February 9, 2007

Tracy Cullen
(202) 974-5282

U.S. Challenges Chinese Subsidies in the World Trade Organization

WASHINGTON, D.C. (February 9, 2007)—On February 2, 2007, the Office of the U.S. Trade Representative announced the launch of dispute-settlement proceedings in the World Trade Organization (WTO) against prohibited subsidies that the Chinese government provides to its domestic manufacturers and exporters.

SPI President William R. Carteaux issued the following statement:

"China is a very important trading partner for the U.S. plastics industry, and SPI welcomed its accession to the WTO in 2001. U.S. plastics trade with China has grown significantly since then, reaching $2.4 billion in exports and $7.5 billion in imports in 2005.

"China has achieved tremendous advances in the implementation of its WTO obligations and opening its market to foreign products. At the same time, however, U.S. plastics manufacturers continue to experience numerous barriers to trade and unfair trade practices, which include the ongoing subsidization of Chinese manufacturers, against whom U.S. companies compete in our market, in China, and in third countries.

"I commend U.S. Trade Representative Susan Schwab and her colleagues in the U.S. government for challenging China's prohibited export and import-substitution subsidies in the WTO. It is important that the U.S. government utilize all of the tools at its disposal to persuade Beijing to live up to its international obligations. On behalf of the U.S. plastics industry, SPI supports the Administration's efforts to level the playing field for U.S. manufacturers in the global marketplace and I strongly urge U.S. officials to continue to defend U.S. trade rights in the future."

Founded in 1937, SPI: The Plastics Industry Trade Association promotes growth in the $427 billion U.S. plastics industry. Representing nearly one million American workers in the third largest U.S. manufacturing industry, SPI delivers legislative and regulatory advocacy, market research, industry promotion and the fostering of business relationships and zero waste strategies. SPI also owns and produces the international NPE trade show. All profits from NPE are reinvested into SPI’s industry services. Find SPI online at www.plasticsindustry.org and www.inthehopper.org.

"From resin suppliers and equipment makers to processors and brand owners, SPI is proud to represent all facets of the U.S. plastics industry," said William R. Carteaux, president and CEO, SPI. "Our most recent economic reports show that the plastics industry as a whole is resilient, and has come through the recession significantly better than other U.S. manufacturing sectors."

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