Following up on my post from yesterday, the U. S. Trade Representative announced today that the United States has filed two new cases against China:
WASHINGTON – The Bush administration announced Monday it is filing two new trade cases against China over copyright piracy and restrictions on the sale of American movies, music and books there.
The action, announced by U.S. Trade Representative Susan Schwab, represented the latest move by the administration to respond to growing political pressure at home to do something about soaring U.S. trade deficits.
Schwab said the United States was filing with the World Trade Organization a case that will challenge Beijing’s lax enforcement of violations of copyrights and trademarks on a wide range of products. American companies contend they are losing billions of dollars in sales because of rampant copyright piracy.
The second case will challenge China’s barriers to the sale of U.S.-produced movies, music and books.
“Piracy and counterfeiting levels in China remain unacceptably high,” Schwab said in announcing the new cases. “Inadequate protection of intellectual property rights in China costs U.S. firms and workers billions of dollars each year.”
The two new cases represent the latest effort by the administration to increase pressure on China now that Democrats, many highly critical of China’s trade practices, have won control of the House and the Senate.
The U.S. trade deficit set a record for a fifth consecutive year in 2006 — at $765.3 billion — with the imbalance with China climbing to $232.5 billion, the highest ever recorded with a single country.
This development comes on the heels of the U. S. case filed in March regarding Chinese paper exports and the case filed in February regarding Chinese export subsidies. This latter case is the largest case ever filed by one WTO member against another in the history of the organization.
I look forward to hearing the Chinese reaction.
