This morning in metals news, the United States Trade Representative USTR once again dished up criticism of the World Trade Organization’s (WTO) Appellate Court, China aims to mitigate the impact of rising iron ore prices on its steelmakers and India’s steel exports have plunged over the last year.
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‘Determined to Take All Necessary Steps’
The USTR took aim Tuesday at a WTO Appellate Court ruling on China’s countervailable subsidies.
“Today’s appellate report recognizes that the United States has proved that China uses State-Owned Enterprises (SOEs) to subsidize and distort its economy,” the USTR said in a prepared statement. “Nonetheless, the majority in the report says that the United States must use distorted Chinese prices to measure subsidies, unless the U.S. provides even more analysis than the hundreds of pages in these investigations. This conclusion ignores the findings of the World Bank, OECD working papers, economic surveys, and other objective evidence, all cited by the United States.”
The Trump administration has often criticized the WTO; the USTR said the recent report “also illustrates the concerns the United States has been raising about the Appellate Body’s functioning.”
“The United States is determined to take all necessary steps to ensure a level playing field so that China and its SOEs stop injuring U.S. workers and businesses,” the USTR concluded.
China’s Steelmakers and Rising Iron Ore Prices
Steelmakers in China have been feeling the pressure this year amid a surge in iron ore prices.
The Chinese government hopes it can do something to reverse the upward trend in the steelmaking material’s cost.
According to Reuters, in a government meeting with steelmakers, the former promised to keep “order” vis-a-vis the iron ore market.
Indian Steel Exports Down
India’s steel exports fell 34% in 2018-2019 compared with the previous fiscal year, the Hellenic Shipping News reported.
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Exports fell to 6.36 million tons during fiscal year 2018-2019, according to the report.