This morning in metals news, China gets called out with respect to its adherence to the rules of the World Trade Organization (WTO), the housing industry is slumping and Kazakhstan is the recipient of its first WTO complaint.
Aluminum Association, AISI Call Out China
The Aluminum Association recently filed comments with the United States Trade Representative (USTR) and the Trade Policy Staff Committee (TPSC) urging the Trump administration to press China on adherence to the rules of the WTO.
In a release Wednesday, the Association said it “believes China has failed to adhere to the letter and spirit of its WTO accession.”
In a letter to TPSC Chairman Edward Gresser, Aluminum Association President and CEO Heidi Brock said China has regressed with respect to adherence to the rules set forth by the WTO.
“Despite initial progress after China’s WTO accession, the last decade has seen a major regression, which calls into question the underlying premises for the decision by the United States and other WTO members to welcome China into the WTO’s rules-based global trading system,” Brock wrote in the letter.
A filing from the American Iron and Steel Institute (AISI) signed by Kevin Dempsey, AISI’s senior vice president of public policy and general counsel, struck a similar tone.
“Now more than 15 years after it acceded to the WTO, China continues to fail to comply with its WTO obligations,” Dempsey wrote. “This trend continues to be a major problem for steel producers in the United States, other U.S. manufacturers, and the broader U.S. economy. AISI strongly urges the U.S. government to recognize China’s compliance failures and adopt a more aggressive strategy that is commensurate with the scope and severity of China’s failure to comply with its WTO obligations.”
Housing Market Down in August
U.S. home sales slumped in August as Hurricane Harvey devastated the Houston area, one of the most robust housing markets in the country.
According to the National Association of Realtors, existing-home sales in August dropped 1.3% and were at their lowest levels in a year.
According to Reuters, Texas and Florida (which was hit by Hurricane Irma earlier this month), comprise 18% of existing-home sales.
Ukraine, Kazakhstan Enter WTO Dispute
Ukraine is taking Kazakhstan to the WTO over a dispute regarding duties on steel pipes, Reuters reported. Ukraine argues that Kazakhstan is using antidumping duties on certain types of steel pipe imported from Ukraine.
According to the report, the dispute is the first targeting Kazakhstan, which has been a WTO member since 2015.