Finance

Finance

US Congress approves bill targeting subsidized Chinese goods

07 March 2012 12:23 (UTC +04:00)

Baku - APA-Economics. The US Congress voted Tuesday to authorize renewed tariffs on billions of dollars worth of goods from China and other countries considered to be state-run economies, a move aimed at countering unfair subsidies, APA reports citing Reuters.

The measure approved by lawmakers fixes a tariff scheme in place since 2007 on imports from "non-market economies" that was struck down by a court ruling in December.

With support across party lines, the House of Representatives voted to give such authority back, following a similar vote on Monday in the Senate. President Barack Obama plans to sign the bill.

Representative Dave Camp, a Republican who heads the powerful House Ways and Means Committee, said on the House floor that the measure would preserve an "important tool" for the United States.

"China distorts the free market by giving enormous subsidies to its producers and exporters, and our companies and workers should not be expected to compete against the deep pockets of the Chinese government," Camp said.

Before the court ruling, the Commerce Department said that such countervailing duties were in place against 23 goods from China and one from Vietnam that were worth a total of $4.7 billion in import value a year.

The Obama administration welcomed the swift congressional approval. Vice President Joe Biden said in a statement that Congress "has taken a clear stand against the unfair trade practices that have put countless American jobs in jeopardy."