Trade Deficit with China Continues to Threaten Viability of North American Manufacturing

PITTSBURGH, June 12 /PRNewswire/ -- PITTSBURGH, June 12 /PRNewswire-USNewswire/ -- This week's U.S. Commerce Department's report of the $29 (B) billion April trade deficit highlights the continued threat China poses to a possible economic recovery fueled by a resurgence in industrial manufacturing.


While the 2009 imbalance to date remains below last year's record pace, China is still responsible for more than half (57%) of the overall U.S. trade deficit in April, the most recent month for which data is available.

"Until the Chinese government is held accountable for its unfair trading practices, these continuing deficits are inevitable," said United Steelworkers (USW) International President Leo. W. Gerard. "North American manufacturing will continue to be displaced by foreign imports as long as trade laws guarding against dumping and illegal subsidies are ignored."

The most recent trade deficit report comes as the USW moves forward with a landmark trade case challenging China's ability to cripple U.S. tire manufacturing with surges of low-cost imports.

The USW filed a petition in April with the International Trade Commission (ITC) asking the Obama administration to cap a large surge of consumer tire imports from China. The petition, filed under Section 421 of the Trade Act of 1974, will test President Obama's election campaign pledge to increase enforcement of U.S. trade laws.

The ITC is currently investigating the complaint and examining applicable relief remedies. If remedies are ultimately recommended, President Obama could approve measures for relief in mid-September.

"Until the unfair trade practices in China are stopped, including adjusting the exchange rate to reflect market conditions, we'll never have balanced trade that benefits both American workers and businesses," Gerard said.

Contact: Wayne Ranick (412) 562-2444

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