U.S. Files WTO Suit to Block China Auto Subsidies

The Obama White House filed a lawsuit against China at the World Trade Organization (WTO) for illegally subsidizing exports in its autos and auto parts sectors, a practice that puts U.S. auto parts manufacturers and some 800,000 American workers at a competitive disadvantage and encourages the outsourcing of auto parts production to China.

The U.S. move follows a letter sent earlier this year to President Obama from 189 Members of Congress, asking his Administration to address China’s predatory trade practices.

The move was welcomed by labor leaders across North America.

“President Obama understands that allowing America’s manufacturing sector to grow and thrive is essential to a healthy and sustainable economy,” said AFL-CIO President Rich Trumka, “and that is why this administration has brought twice the number of trade cases against China as the previous administration.”

“Today’s announcement makes clear the President’s commitment to enforcing U.S. trade laws and fighting for American workers,” said USW International President Leo W. Gerard. “His action, coupled with other steps to fight for fair trade, are rebuilding confidence that when people work hard and play by the rules, the President will stand up for them.”