China Agrees to Remove Certain Export

Subsidies
WASHINGTON, Nov. 29 Bowing to American pressure on te eve o! ig"#eve# ta#$s to
re%uce economic tensions, &ina agree% Turs%a' to terminate a %o(en %i!!erent su)si%ies an%
ta* re)ates tat promote its own e*ports an% %iscourage imports o! stee#, woo% pro%ucts,
in!ormation tecno#og' an% oter goo%s.
Te action most#' a!!ects e*ports )' &inese companies tat ave !oreign investors or are +oint
ventures wit !oreign companies. Near#' ,- percent o! &inese e*ports are pro%uce% )' tese
)usinesses. A#so a!!ecte% were ta* )rea$s tat &ina gives its own companies i! te' %o not
import goo%s temse#ves.
Tere were no c#ear in%ications Turs%a' on wic e*ports, i! an', wou#% )ecome more
e*pensive an% wic imports wou#% )ene!it, since te precise amount o! su)si%ies tat %i!!erent
companies get is not pu)#ic.
.espite te progress announce% Turs%a', te Bus a%ministration remaine% concerne% a)out
increasing#' aggressive actions )' &ina in recent monts to use su)si%ies, regu#ations an% oter
government measures to promote nationa# campions in ma+or sectors were !oreign countries
ave )een strong, inc#u%ing energ', aerospace, te#ecommunications an% !inancia# services.
Te intent o! te new agreement, negotiate% )' Susan &. Scwa), te top /nite% States tra%e
envo', is to e#p American companies compete against &ina. Wi#e 0s. Scwa) ac$now#e%ge%
tat some o! te #oss o! su)si%ies migt )e )orne )' &inese companies owne% in part )'
Americans, se trumpete% te agreement as a ma+or )rea$troug.
1Tis outcome represents a victor' !or /.S. manu!acturers an% teir wor$ers,2 0s. Scwa) sai%
a!ter te accor% was signe% )' &inese an% American representatives at te Wor#% Tra%e
Organi(ation in Geneva. 1It sows tat 3resi%ent Bus4s po#ic' o! serious %ia#ogue an% reso#ute
en!orcement is %e#ivering rea# resu#ts.2
0s. Scwa) sai% se ope% tat te negotiate% sett#ement on su)si%ies, a!ter monts o! #itigation
at te W.T.O., wou#% improve te atmospere on oter %isputes over &ina4s currenc' po#icies,
antimonopo#' ru#es, regu#ations an% oter practices tat seem aime% at %iscouraging !oreign
imports an% investments.
But no )rea$trougs on tese oter matters appear to )e in te o!!ing two wee$s aea% o! te
ne*t roun% o! te 1strategic economic %ia#ogue2 wit &ina set up #ast 'ear )' Treasur'
Secretar' Henr' 0. 3au#son 5r.
In a%vance o! tat session, negotiators #e% )' 0s. Scwa), 0r. 3au#son an% &ommerce Secretar'
&ar#os 0. Gutierre( are tr'ing to ammer out agreements on !oo% an% pro%uct sa!et', improve%
access to &ina !or American )an$s an% insurance companies an% an easing o! &ina4s
restrictions on !oreign companies.
6ate#', owever, te a%ministration as carge% tat &ina as )ecome more protectionist in
crucia# areas )' erecting nontari!! )arriers troug te use o! increasing#' sopisticate%
regu#ations an% government"impose% stan%ar%s tat urt !oreign companies )ut e#p %omestic
ones.
As$e% weter te #atest agreement represente% a tren% awa' !rom suc in%ustria# po#ic'
practices, 0s. Scwa) was noncommitta#. 1I wou#% #i$e to tin$ tat it4s a signa# te tren% is
canging,2 se sai%. 1We %on4t $now !or sure.2
Te agreement on su)si%ies was ai#e% in te /nite% States )' te Nationa# Association o!
0anu!acturers an% oter groups critica# o! &ina4s economic practices. But it met wit
s$epticism among !ami#iar critics o! &ina, especia##' tose wo carge tat &ina $eeps its
currenc' va#ue #ow to promote e*ports.
Senator &ar#es 7. Scumer, te New 8or$ .emocrat, wo as critici(e% &ina, sai% te
agreement was 1a sma## step on te #ong roa% towar% p#a'ing more !air#'2 in tra%e.
A#arme% )' a tra%e %e!icit tat soare% to 92:2 )i##ion #ast 'ear, an% is #i$e#' to go muc iger
tis 'ear, 0r. Scumer an% oter #awma$ers, inc#u%ing ;epu)#icans, are ca##ing !or #egis#ation to
impose sanctions on &ina over its !ai#ure to #et te va#ue o! its currenc' appreciate !aster.
Te &inese currenc' as appreciate% <2 percent against te %o##ar since mi%"2--=, )ut it as
%ec#ine% against te euro, ma$ing it ar%er tan ever !or 7uropeans to se## to &ina.
Te su)si%ies a!!ecte% )' te agreement on Turs%a' were tose %ec#are% i##ega# )' te /nite%
States, 0e*ico an% oter tra%ing partners wit &ina, citing W.T.O. #aws.
But te move )' &ina wi## not a!!ect oter su)si%ies on certain $in%s o! stee# pro%ucts, eav'"
%ut' tires, paper an% cemica#s tat te /nite% States a#so carges are un!air. Te &ommerce
.epartment as invite% manu!acturers o! tese pro%ucts to see$ re#ie! )' re>uesting %uties on
tese pro%ucts, an% tat process continues.
A#so unreso#ve% are oter American #ega# actions troug te %ispute reso#ution mecanism o!
te W.T.O.
Tese actions carge tat &ina %iscriminates against !oreign auto parts )' re>uiring #oca#
content !or automo)i#es? !ai#s to en!orce cop'rigt an% tra%emar$ ru#es on so!tware, vi%eos an%
oter propert'? an% restricts imports o! !i#ms, music an% )oo$s.
Te &inese ave )een irate over American actions tat ca##enge teir economic practices at te
W.T.O. an% over te imposition o! %uties )' te &ommerce .epartment.
But 0s. Scwa) sai% Turs%a'4s agreement on su)si%ies vin%icate% te a%ministration4s
approac o! using negotiation to reso#ve %isputes an% to oppose punitive #egis#ation tat is
pen%ing in &ongress on currenc' an% oter po#icies.
http://www.nytimes.com/2007/11/30/business/worldbusiness/30trade.html?_r=0
India to remove 'undue' export subsidies to
textile industry
N7W .76HI@ Te /S, 7/, 5apan an% Tur$e' are pusing In%ia !or %ismant#ing its Aun%ueA
e*port su)si%ies to te te*ti#e in%ustr', )ut New .e#i is $een on !urter ta#$s to temper te
pase"out an% to ensure tat te $e' e*port sector is not strippe% o! a## support.
B8es, we in%ee% wi## ave to ta$e awa' some e*port su)si%ies given to te*ti#e in%ustr' in tree
'ears as te treso#% #eve# !or >ua#i!'ing !or suc sops as )een )reace%. But, te countr' wi##
)e care!u# to ensure tat it ta$es awa' on#' wat necessari#' as to )e ta$en awa',B a senior
commerce %epartment o!!icia# to#% 7T.
Te su)si%ies an% countervai#ing measures agreement o! te Wor#% Tra%e Organi(ation CWTOD
a##ows countries wit per capita income )e#ow 9<,--- to give e*port su)si%ies as #ong as e*ports
!rom a particu#ar sector is #ower tan :.2=E o! wor#% tra%e. In%iaAs sare in te g#o)a# mar$et !or
te*ti#es is a#most FE an% as )een iger tan te treso#% #eve# !or !ive 'ears.
Since countries are given eigt 'ears to remove te su)si%ies, In%ia as time ti## 2-<= to %o so.
BTe government nee%s to care!u##' negotiate wat $in% o! su)si%ies nee% to go as te te*ti#e
sector gets a num)er o! su)si%ies tat are not %irect#' targete% at it, )ut is given to a## in%ustr' in
genera#,B points out .G Nair, secretar' genera#, &on!e%eration o! In%ian Te*ti#e In%ustries.
In%iaAs e*ports o! te*ti#es, inc#u%ing rea%'ma%e garments, is sai% to )e )etween 9:< )i##ion an%
9:2 )i##ion, as per estimates ma%e )' &ITI. It accounts !or aroun% <FE o! in%ustria# pro%uction
an% more tan <-E o! te countr'As tota# e*ports. Te sector emp#o's aroun% := mi##ion peop#e
an% is te #argest emp#o'er a!ter agricu#ture.
Te In%ian te*ti#es sector is )ene!iciar' o! a ost o! e*port promotion scemes, suc as te
e*port"oriente% units an% specia# economic (ones scemes, te e*port promotion capita# goo%s
sceme an% promotiona# measures #i$e te !ocus pro%uct an% !ocus mar$et scemes.
Apart !rom tese, tere are %ut' neutra#isation p#ans, #i$e %ut' %raw)ac$ an% a%vance #icensing
scemes.
http://articles.economictimes.indiatimes.com/2012-05-1/news/3170125!_1_te"tile-
industry-total-e"ports-e"port-subsidies
Brazil targets poultry export subsidies
An%rew Watts
0on%a' -2 Apri# 2-<2 <-@<:
Brazil has given a clear indication of its intention to attac European export subsidies for
poultrymeat the next time the t!o sides meet to discuss trade arrangements"
Spea$ing at a recent Financial Times con!erence, Hrancisco Turra, presi%ent o! te Bra(i#ian
3ou#tr' Association C/BAB7HD, sai% 7/ e*port su)si%ies !or wo#e cic$en, particu#ar#' to
mar$ets suc as Sau%i Ara)ia, represent a ma+or treat to its own in%ustr'.
He sai% it was #i$e#' to )e ca##enge% at te ne*t roun% o! !ree"tra%e agreements )etween
0ercosur, te po#itica# union tat promotes tra%e )etween Bra(i#, Argentina, 3aragua' an%
/rugua', an% te 7/.
Bra(i# is te wor#%As #argest pou#tr' e*porter an% te tir% #argest pro%ucer a!ter te /SA an%
&ina. But wit %omestic consumption a#rea%' ig " at FI.=$g per capita compare% wit :F$g
in 7urope, 9$g in &ina an% :$g in In%ia " to maintain in%ustr' growt it nee%s to increase
e*ports.
Tere are opportunities. I! &ina an% In%ia were to increase per capita consumption )' <$g a
'ear, it is estimate% tat a !urter 2.=m tonnes o! pou#tr'meat wou#% )e re>uire%, e>uiva#ent to
te annua# pro%uction o! ;ussia.
7urope is Bra(i#As secon% #argest e*port mar$et, wit Te Neter#an%s, German' an% te /G its
principa# out#ets. But attempts to gain a !urter !ooto#% are !rustrate% )' restrictive import
>uotas an% non"tari!! )arriers suc as #imitations on !ro(en cic$en, sai% 0r Turra.
A Bra(i#ian stu%' estimates tat suc po#icies !orce 7uropean consumers to pa' an e*tra JF)n in
retai# prices tan wou#% ave )een te case un%er a more re#a*e% tra%e arrangement.
A#so spea$ing at te con!erence was 5on &#ar$e, %irector !or internationa# a!!airs at te 7/
&ommission. Te 7/ accounts !or 29E o! Bra(i#As agricu#ture e*ports, e sai%, an% tis sou#%
)e use% to put pressure on Bra(i# to !urter protect te rain!orests.
0r &#ar$e a%%e% tat te 7/ is prepare% to review te tari!!s an% %uties it as on Bra(i#ian
agricu#tura# commo%ities, )ut on#' as part o! a new !ree"tra%e agreement wit 0ercosur. Te 7/
was not wi##ing to negotiate on a uni#atera# )asis, e a%%e%.
http://www.#wi.co.u$/articles/02/0/2012/13223!/bra%il-tar&ets-poultry-e"port-
subsidies.htm