Trade Flows and Washington Updates


Author - Elizabeth J. Drake


Elimination of a Loophole Exempting Investigation of Certain Goods Alleged to Be Derived From Forced Labor – Greater Enforcement in the Offing?
May 17, 2016 by Sahar J. Hafeez and Elizabeth J. Drake

U.S. law prohibits the importation of “{a}ll goods, wares, articles, and merchandise mined, produced, or manufactured wholly or in part in any foreign country by convict labor or/and forced labor or/and indentured labor.”

Stewart and Stewart Releases Report on China’s Support Policies for its Chemicals and Plastics Industries
October 30, 2014 by Terence P. Stewart, Elizabeth J. Drake and Jennifer M. Smith

In a new report released today, Stewart and Stewart provides a detailed look at the vast range of Chinese government policies supporting its chemical and plastics industries.

Surging Steel Imports Put Jobs at Risk
May 13, 2014 by Terence P. Stewart and Elizabeth J. Drake

In a new report released today, Stewart and Stewart and the Economic Policy Institute reveal how a growing glut of worldwide steel production is plunging the U.S. steel industry into crisis.

WTO Rules against China’s Export Restraints on Rare Earths: A Step Forward in Leveling the Playing Field
March 26, 2014 by Terence P. Stewart, Ping Gong and Elizabeth J. Drake

Today the WTO announced an important victory in the continued struggle to bring China into compliance with its international obligations regarding export restraints on raw materials. The WTO panel ruled that China’s export duties and quotas on rare earths, molybdenum, and tungsten violate China’s WTO obligations.

Green Technology Trade Developments in 2013 – Success Or Failure?
December 17, 2013 by Terence P. Stewart, Nicholas J. Birch and Elizabeth J. Drake

In a world concerned with the effects of ongoing climate change, there has been a push by many countries to support green technologies. Technological and manufacturing leadership is important for job creation, trade flows, and lowering the cost of adopting green technologies for energy production and other uses. In 2013, trading nations continued to struggle to deal with the fallout of various governmental policies on trade flows.

Is a Balance Between Trade Liberalization and Animal Welfare Achievable: The Role of the WTO EC – Seal Products Case in the Debate
March 13, 2013 by Terence P. Stewart, Stephanie Manaker Bell and Elizabeth J. Drake

On February 18, 2013, a World Trade Organization (“WTO”) panel began its first substantive meeting on disputes initiated by Canada and Norway against the European Commission’s seal products ban. The disputes, now consolidated as European Communities – Measures Prohibiting the Importation and Marketing of Seal Products (DS400 & DS401) (“EC – Seal Products II”), raise important questions concerning the appropriate balance between trade liberalization and animal welfare. Individuals and organizations interested in the dispute will have opportunities to submit information and argument as the dispute proceeds over the next several months.

Antigua and U.S. Dispute Proposed Withdrawal of Intellectual Property Rights Protections as Authorized WTO Retaliation: Implications for the WTO Dispute Settlement System
March 7, 2013 by Elizabeth J. Drake

At the February 27, 2013 meeting of the WTO’s Dispute Settlement Body (“DSB”), the United States and Antigua and Barbuda traded accusations regarding the on-going dispute over Antigua’s right to suspend intellectual property protections for U.S. rights holders.

How Trade Rules Can Help Level the Export Financing Playing Field: New Developments and a Path Forward for 2013
November 16, 2012 by Elizabeth J. Drake

At the end of this month, two key events in the continuing effort to discipline subsidized export financing by the Government of China will occur. First, the U.S. will, for the first time, impose countervailing duties on imports from China to offset export credit subsidies provided by the China Export-Import Bank (“China Ex-Im”). The export credit program will account for the majority of countervailing duties imposed on imports of solar panels from China, due to the Chinese government’s refusal to share China Ex-Im data with the U.S. during its investigation. Second, also at the end of this month, the Treasury Department will report to Congress on progress in negotiations with China and other countries to limit export credit subsidies. This will be the first such report since the U.S. and China announced new negotiations on export financing earlier this year, with the goal of reaching an agreement by 2014.

Terence P. Stewart Speaks to Fluorspar Industry on China’s Export Restraints
October 25, 2012 by Terence P. Stewart and Elizabeth J. Drake

On October 24, 2012, Terence P. Stewart, Managing Partner of the Law Offices of Stewart and Stewart, addressed the annual global conference of the fluorspar industry in Vancouver, British Colombia. Stewart spoke to the group about China’s export restraints on fluorspar, providing an analysis of the successful case that the U.S., EU, and Mexico brought against these export restraints at the World Trade Organization and the likely market impacts of the case. The presentation provided timely insight as China faces a December 31, 2012 deadline to eliminate the export restrictions that were found to violate its WTO obligations.

Meeting the Challenge of China’s State-Owned Enterprises
February 15, 2012 by Elizabeth J. Drake

China’s state-owned enterprises (SOEs) play an increasingly important role in the Chinese market and in economies around the world. SOEs are key players in sectors ranging from energy to automobiles and chemicals to information technology. Many SOEs are also present in the seven “Strategic and Emerging Industries” in which China aims to become a world leader by 2030, in part through the investment of $1.5 trillion in government resources over five years.

New Stewart and Stewart Report Details Rising Government Support for Chinese Auto and Auto Parts Producers
January 31, 2012 by Terence P. Stewart and Elizabeth J. Drake

In its 12th Five-Year Plan, adopted in March of last year, China designates “new-energy” automobiles and their components as one of the seven “strategic and emerging industries” targeted for massive increases in government support. The Chinese government will invest $1.5 trillion in these seven industries over the next five years. China will dedicate more than $18 billion in the new-energy automotive sector through 2020, and it aims to become the world’s leading producer of electric and hybrid vehicles and their key components by 2030.

New 2012 Tariff Categories Permit Better Tracking of Wind Energy Imports
January 4, 2012 by Elizabeth J. Drake

U.S. imports of wind energy components such as generating sets and towers grew rapidly in 2011, outpacing the growth in megawatts of wind power capacity installed. Up until now, it has been more difficult to track imports of other equipment used in the wind energy industry.

WTO Appellate Body Upholds U.S. Safeguard against Imported Passenger Car and Light Truck Tires from China – Confirming the Importance of Self-Help for Injured Industries and Workers
September 8, 2011 by Terence P. Stewart, Amy S. Dwyer and Elizabeth J. Drake

The September 5th World Trade Organization Appellate Body report in US – Tyres (China), WT/DS399, affirmed the right of the United States faced with market disruption from surging imports from China to make use of a special transitional safeguard China accepted as part of its accession protocol to the WTO in 2001. For the industries and their workers who have sought relief under the U.S. law implementing this right (Section 421 of the Trade Act of 1974, as amended (19 U.S.C. § 2451)), it was a vindication of the correctness of their cause.

Preventing the Next Solyndra How to Create a Level Playing Field for America’s Solar Industry
September 2, 2011 by Terence P. Stewart and Elizabeth J. Drake

On August 31, 2011, Solyndra, Inc., a U.S. solar company that had received hundreds of millions in government-backed loan guarantees and employed more than a thousand American workers, announced it was entering bankruptcy and closing its doors. Solyndra was the third solar company to declare bankruptcy last month, following close on the heels of Evergreen Solar, Inc. and SpectraWatt Inc. While some news reports and commentators suggest the bankruptcies call into question the wisdom of U.S. government support for the solar industry, others rightly note that competition with more aggressively subsidized Chinese manufacturers has played a major role in the industry’s plight.

Stewart and Stewart Report Examines Government Support for High Technology in China’s Latest Economic Development Plan
June 20, 2011 by Terence P. Stewart and Elizabeth J. Drake

On March 14, 2011, the Eleventh National People’s Congress of the People’s Republic of China approved The 12th Five-Year Plan for National Economic and Social Development. The plan intensifies the nation’s focus on its high-technology sector as an engine for growth and industrial transformation, and it outlines goals to help the country develop science and technology as important driving forces for China’s economic and social development over the next five years.

Stewart and Stewart Report Reveals Increased Support for Agriculture in China’s Latest Economic Development Plan
May 11, 2011 by Terence P. Stewart and Elizabeth J. Drake

On March 14, 2011, the Eleventh National People’s Congress of the People’s Republic of China approved the nation’s 12th Five-Year Plan for National Economic and Social Development (“12th Five-Year Plan”). The plan contains a wide array of goals for the nation for the five years from 2011 through 2016, including goals in the country’s agricultural sector.

U.S. Faces Important Choices after WTO Appellate Body Ruling on Trade Remedies for Dumping and Subsidization by China
March 15, 2011 by Elizabeth J. Drake

On March 11, 2011, the Appellate Body of the World Trade Organization (“WTO”) issued its decision in a challenge brought by the Government of China to several antidumping (“AD”) and countervailing duty (“CVD”) investigations conducted by the United States. The decision reversed a couple key aspects of an earlier WTO panel decision that had largely upheld the manner in which U.S. trade remedy laws had been applied to China. The United States now has several options before it in light of the Appellate Body’s ruling.

Copenhagen Reinforces Importance of Effective Border Measures
December 19, 2009 by Elizabeth J. Drake

While some commentators have suggested that the inclusion of a “border adjustment” provision in the climate legislation that passed the U.S. House of Representatives earlier this year was another source of tension that would bog down negotiators on climate change talks in Copenhagen, it appears the opposite is more likely the case as talks wrapped up just hours ago.

House Passes Climate Change Bill: Rebates and Border Measures Aim to Mitigate Carbon Leakage Threat
June 30, 2009 by Elizabeth J. Drake

On Friday, June 26, 2009, the U.S. House of Representatives passed H.R. 2454, The American Clean Energy and Security Act of 2009, historic legislation aimed at capping U.S. greenhouse gas emissions and averting the worst effects of climate change. The bill contains a number of measures to address the threat of carbon “leakage.” This Trade Flow provides an explanation of this issue as the legislation moves through Congress.

“Buy American” is No Job Killer
June 8, 2009 by Elizabeth J. Drake

There have been a number of stories in the media recently about how the “Buy American” provision in the economic stimulus and recovery law enacted earlier this year is leading to job-destroying retaliation by other countries. The most recent one, the lead editorial in the June 3 New York Times, “The Peril of Buy American,” like other reports, offers an incomplete analysis. The “Buy American” provision does not cost American jobs. It helps preserve and create them.

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