Details on USTR Initiating Section 301 Investigation on China’s Green Technology Practices
On October 15, 2010, the U.S. Trade Representative initiated a section 301 investigation1 with respect to acts, policies, and practices of China affecting trade and investment in green technology2.
Sign up for a free preview to unlock the rest of this article
Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.
Written comments are due by 5:00 p.m. on November 15, 2010.
The USTR initiated this investigation in response to a petition filed on September 9, 2010 by the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL-CIO.
Petition Says China Violates WTO to Protect its Producers of Green Technology
The petition alleges that China “employs a wide range of policies to stimulate and protect its domestic producers of green technology, from wind and solar energy products to advanced batteries and energy-efficient vehicles,” enabling China to become the dominant global supplier of a number of green technologies. The petition alleges that China’s acts, policies, and practices in the area of green technology violate China’s WTO commitments under the GATT 1994, under the Subsidies and Countervailing Measures Agreement (SCM Agreement), and under China’s Protocol of
Accession to the WTO.
These acts, policies, and practices are export restraints such as export duties and export quotas on rare earth minerals, tungsten, and antimony; allegedly prohibited subsidies that are contingent on export performance, or on the use of domestic over imported goods, affecting a variety of products, including wind turbines; discrimination against foreign companies and goods, including with respect to wind and solar power projects; technology transfer as a requirement for approval of foreign investments in China; and domestic subsidy programs that are allegedly causing serious prejudice to U.S. interests, including subsidies supporting renewable energy industries.
Public Hearing May be Requested
According to the USTR, interested persons may request a public hearing. Requests for a public hearing are due by 5:00 p.m. on November 1, 2010. In the event that a hearing is to be held, the USTR will issue a notice specifying the date of the hearing and procedures for submitting written testimony.
USTR is Delaying its Request for WTO Consultations for Up to 90 Days
In light of the number and diversity of the acts, policies, and practices covered by the petition, and after consulting with the petitioner, the USTR has decided to delay for up to 90 days the request for consultations with China for the purpose of verifying and improving the petition.
During the period of delay, the USTR will seek information and advice from the petitioner and the appropriate committees established pursuant to section 135 of the Trade Act. The Trade Representative will take account of this information and advice, as well as the public comments submitted in response to this notice, in improving and verifying the petition during the delay period.
1This investigation is initiated under section 302(a) of the Trade Act of 1974, as amended, which authorizes the USTR to initiate a section 301 investigation.
2The petition defines products of green technology “as products used to produce renewable energy or reduce the emissions associated with the production and use of energy. These are the products necessary to produce energy from wind, solar, biomass, geothermal, hydro, and nuclear resources, products to enable the production of energy from coal with fewer greenhouse gas emissions, and products that consume less energy or alternative sources of energy, such as energy-efficient vehicles and energy-efficient lighting.” The petition also covers “a wide range of upstream inputs to green
technology products.”
(See ITT’s Online Archives or 09/10/10 news, 10091015, for BP summary on the filing of the petition.
See ITT’s Online Archives or 10/18/10 news, 10101825, for BP summary of the USTR’s announcement of the initiation of this investigation.)
USTR contact -- Eric Garfinkel (202) 395-3150
(USTR notice, FR Pub 10/20/10, D/N USTR-2010-0028)