STATEMENT

Contact: Tracy Cullen
(202) 974-5282
Email: tcullen@socplas.org

SPI STATEMENT ON REPORT BY USTR, “U.S.–CHINA TRADE RELATIONS: ENTERING A NEW PHASE OF GREATER ACCOUNTABILITY AND ENFORCEMENT”

WASHINGTON, D.C. (February 23, 2006) – After an analysis of the benefits and challenges underlying U.S. trade since China joined the World Trade Organization (WTO) in 2001, the Office of the U.S. Trade Representative (USTR) has outlined several action items it intends to implement to significantly open the Chinese market to U.S. goods and services, enforce protection of U.S. intellectual property rights, and hold China strictly accountable to its WTO obligations. The agency is committed to directing additional resources to vigorously enforce U.S. trading rights with China by establishing a new China Enforcement Task Force. USTR’s findings and recommendations are embodied in “U.S.–China Trade Relations: Entering a new Phase of Greater Accountability and Enforcement,” a report released on February 14, 2006.

SPI President William R. Carteaux issued the following statement:

“The Society of the Plastics Industry (SPI) welcomes USTR’s more aggressive China trade policy and is pleased with Ambassador Portman’s recognition that a more assertive stance is needed with China. The enormous $205 billion deficit with China is clear evidence of an uneven trading relationship. We commend USTR for identifying concrete policy shifts aimed at rectifying this situation.

“An uncompromising posture on enforcement of China’s WTO obligations is absolutely necessary. In addition to more effective protection of U.S. intellectual property rights, there are other obstacles that have hindered U.S. exports to that market. U.S. exporters, particularly those in the plastics industry, have grappled with disparate customs procedures, lack of transparent regulations and standards, de facto discriminatory tax treatment, and other impediments that have made it difficult to get products into the Chinese market. China’s full and strict compliance with its WTO obligations is the only way to dismantle these barriers.

“The U.S. plastics industry also confronts challenges on the import side of the equation. Plastics processors have born the burden of this lopsided relationship, which in 2004 led to a record $4 billion deficit in plastics product trade. An undervalued Yuan and an inability to address unfair subsidies to Chinese manufacturers are ongoing challenges that must be addressed if the United States is to achieve an equitable trading relationship with China. USTR’s report speaks to these important concerns and SPI and its members hope that it will be a catalyst for prompt passage of trade legislation that addresses these issues.

“We also view USTR’s report as a call to action. The China Enforcement Task Force’s ability to identify specific deficiencies in China’s WTO compliance record depends upon active participation and input from U.S. companies with first-hand experience in China. SPI will continue to collect information from our members to ensure that the plastics industry’s interests are accounted for in USTR’s campaign to hold China accountable for its WTO obligations.

“China continues to be a critical market for the U.S. plastics industry. Over the last few years, the industry has made inroads into this vast market, but we know that U.S. plastics companies would observe even greater benefits if the Chinese market reflected the openness called for by WTO rules.”

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Founded in 1937, The Society of the Plastics Industry, Inc., is the trade association representing one of the largest manufacturing industries in the United States. SPI's members represent the entire plastics industry supply chain, including processors, machinery and equipment manufacturers and raw materials suppliers. The U.S. plastics industry employs 1.3 million workers and provides nearly $345 billion in annual shipments.

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