U.S. probes China’s green energy subsidies

U.S. probes ChinaÆs green energy subsidies    The United States on Friday has initiated an investigation into the acts, policies and practices of China affecting trade and investment in so-called green technologies.
   The investigation was initiated in response to a petition filed by the United Steelworkers (USW) on Sept. 9, the Office of the U.S. Trade Representative said in a statement.
   The petition alleges that China employs a wide range of policies that protect and unfairly support its domestic producers of wind and solar energy products, advanced batteries and energy-efficient vehicles, among other products, as China seeks to become the dominant global supplier of these products.
   According to the steelworkers' petition, these policies include export restraints, prohibited subsidies, discrimination against foreign companies and imported goods, technology transfer requirements, and domestic subsidies causing serious prejudice to U.S. interests.
   The petition further alleges that China's policies have caused the annual U.S. trade deficit in green-technology goods with China to increase substantially since China joined the World Trade Organization, making China the top contributor to the U.S. global trade deficit in the sector.

Kirk

   'We take the USW's claims very seriously, and we are vigorously investigating them,' said U.S. Trade Representative Ron Kirk, in a statement. 'In light of the large number of allegations and the extensive documentation accompanying them, I have asked my staff to utilize the 90-day period allowed by statute to thoroughly examine and verify the USW's claims.
   'For those allegations that are supported by sufficient evidence and that can effectively be addressed through WTO dispute settlement, we will vigorously pursue the enforcement of our rights through WTO litigation,' he said.
   The U.S. government's investigation will consider whether acts, policies, and practices of the Chinese government deny U.S. rights or benefits under the GATT 1994, the Subsidies and Countervailing Measures Agreement (SCM Agreement), and China's Protocol of Accession to the WTO.
   Under section 301 of the 1974 Trade Act, the USTR may request consultations with the foreign country concerned at the time an investigation is initiated. The statute also provides, however, that the USTR, after consulting with the petitioner, may delay for up to 90 days any request for consultations for the purpose of verifying or improving the petition.
   In view of the petition's depth, the USTR has decided to delay up to 90 days the request for consultations with the Chinese government to verify and improving the petition. During this period, the USTR will seek information and advice from the petitioner and advisory committees.
   The USTR said that because the issues covered in the China-Green Technology investigation involve U.S. rights under the WTO Agreement, any consultation request will be made under the WTO Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU), and unless consultations result in a mutually acceptable resolution, it will request the establishment of a WTO panel under the DSU.