The Ministry of Foreign Trade and Economic Cooperation (
MOFTEC)
expressed "deep regret" at the United States' headstrong decision
to impose safeguard tariffs on steel imports despite angry global
opposition.
China and the US are expected to hold talks soon on the issue and
the two sides are discussing the specific time and place, said the
ministry.
China has applied to the World Trade Organization (WTO) to arrange talks with the US on
March 14. The US must decide on the time and place of the talks
together with China within 10 days, according to WTO rules.
US
President George W. Bush slapped safeguard tariffs of 8 per cent to
30 per cent on several types of imported steel on March 5 in an
effort to help the ailing US industry. The tariffs take effect on
Wednesday.
The countries hardest hit by the tariffs include Japan, the
European Union, the Republic of Korea, China, Ukraine, Brazil and
Russia.
The EU Commission started the WTO dispute resolution procedure last
week and Japan announced on Monday that it will complain to the WTO
immediately after the US steel tariffs take effect.
The tariffs exempt countries that have signed free trade agreements
with the US - Canada, Israel, Jordan and Mexico - and developing
countries with only limited steel exports to the US.
Australia has negotiated an exemption to most of the tariffs, with
Prime Minister John Howard saying on March 11 that 85 per cent of
Australian steel exports to the US would not be affected by the new
tariffs.
Zhang Hanlin, a professor with the Beijing-based University of
International Business and Economics, said China intends to seek
compensation for losses incurred on its iron and steel companies
through talks with the US.
In
accordance with WTO rules, China could rightfully ask the US to
increase its imports of other products such as textiles from China
or lower its tariffs on these products as compensation, he told
China Daily in an interview.
But more probably, China will be able to force the US to lift its
steel tariffs within a year, he said. Some other analysts guessed
China will retaliate by imposing safeguard tariffs on farm products
imported from the US if it is not granted satisfactory
compensation.
US
farm products are very competitive on the global market and are
expected to flood into China after the country's WTO entry, dealing
a heavy blow to local farmers.
During the Fifth Plenary Session of the Ninth People's Congress,
Premier Zhu Rongji said that increasing farmers' income is a major
concern of the Chinese Government and jokingly proposed a
retaliatory 30 per cent tariff on soybean imports from the US to
protect Chinese farmers.
(China Daily March 20,
2002)