JONES INTRODUCES THE UNFAIR CHINESE AUTOMOTIVE TARIFF EQUALIZATION ACT


H.R. 4808 would prevent imports of passenger cars from China until the U.S. and Chinese tariffs on these items are equal.

WASHINGTON, D.C. - Third District Representative Walter B. Jones (R-NC) yesterday introduced H.R. 4808, the Unfair Chinese Automotive Tariff Equalization Act, a bill that would prevent imports of passenger cars from China until the U.S. and Chinese tariffs on these items are equal. Representative Dale Kildee of Michigan is the bill's principle Democratic cosponsor.


"We can all agree that in our trading relationships, the playing field must be level. Unfortunately, that's not the case with China," Congressman Jones said. "While the Chinese government slaps a 28 percent tariff on American-made cars, the U.S. tariff on Chinese cars is 2.5 percent."


The legislation does not require U.S. tariffs on passenger cars to be raised or Chinese tariffs to be lowered. It simply states that until tariff rates are equal, no Chinese-made cars may be imported into America.


"China has enough trade advantages already: they manipulate their currency, violate intellectual property rights, utilize heavy government subsidies, pay their workforce just pennies a day and they don't have to worry about the labor and environmental standards by which companies in America must abide," Jones said. "The tariff disparity just gives China another unfair advantage - an advantage that threatens the job of every worker in the U.S. auto industry."


Two Chinese manufacturers - Chery and Geely - have announced plans to begin exporting cheap Chinese-made cars to the U.S. as soon as next year. It is reported that Chery eventually plans to annually sell 250,000 cars here. Geely reportedly plans to enter the U.S. market by 2008, and by 2012 it hopes to sell 100,000 cars a year. In addition, other manufacturers that already export vehicles from China to Europe and elsewhere may also soon export Chinese-made vehicles to America.


"U.S. auto workers deserve nothing less than the opportunity to compete on a level playing field," Congressman Jones said. "This legislation would help give U.S. auto workers a fighting chance."