BUENOS AIRES (Reuters) — The United States, European Union and Japan vowed on Tuesday to work together to fight market-distorting trade practices and policies that have fueled excess production capacity, naming several key features of China’s economic system.
BUENOS AIRES (Reuters) — The United States, European Union and Japan vowed on Tuesday to work together to fight market-distorting trade practices and policies that have fueled excess production capacity, naming several key features of China’s economic system. European Commissioner for Trade Cecilia Malmstrom speaks next to China’s Vice Minister of Commerce Wang Shouwen (2nd L), Argentina’s Foreign Minister Jorge Faurie (L) and Japan’s Vice Minister for International Affairs at the Ministry of Economy, Trade and Industry Tadao Yanase during the Business Forum at the 11th World Trade Organization’s ministerial conference in Buenos Aires, Argentina December 12,2017. REUTERS/Marcos BrindicciIn a joint statement that did not single out China or any other country, the three economic powers said they would work within the World Trade Organization and other multilateral groups to eliminate unfair competitive conditions caused by subsidies, state-owned enterprises, “forced” technology transfer and local content requirements. The move was a rare show of solidarity with the United States at a World Trade Organization meeting dominated by differences over U. S. President Donald Trump’s “America First” trade agenda and U. S. efforts to stall the appointment of WTO judges. It reflected growing frustration among industrial countries over China’s trade practices, along with concerns that other developing countries will follow Beijing’s lead. The statement said protectionist practices “are serious concerns for the proper functioning of international trade, the creation of innovative technologies and the sustainable growth of the global economy.” EU Trade Commissioner Cecilia Malmstrom said China’s industry subsidies, including for aluminum and steel, were flooding global markets and hurting European workers in a “very, very dramatic” way. “There’s no secret that we think that China is a big sinner here, but there are other countries that are as well,” Malmstrom told reporters on the sidelines of a business forum.
