Posted on 03/09/2012 11:37:47 AM PST by 1rudeboy
WASHINGTON (AP) — Congress on Tuesday overturned a court decision and reaffirmed that the government has the right to impose higher tariffs on goods from China and other state-run economies that subsidize their exports to the United States.
The House voted 370-39 to pass the measure and send it to President Barack Obama for his signature. The Senate approved it Monday on a voice vote with no debate.
"By passing this law, Congress has taken a clear stand against the unfair trade practices that have put countless American jobs in jeopardy," Vice President Joe Biden said in a statement.
The speedy and bipartisan congressional action came after a federal appellate court ruled in December that the Commerce Department did not have the authority to levy the punitive tariffs because Congress had never explicitly given the agency that right.
The Commerce Department has been applying these "countervailing" duties since 2007. The legislation ensures that 24 existing higher tariff orders and six pending investigations against imports from China and Vietnam will continue to be valid. Of those 24, 23 are directed at Chinese subsidies.
The duties are allowed under World Trade Organization rules to counteract unfair subsidies used by countries, such as China and Vietnam, with non-market economies. China agreed to abide by countervailing duty laws when it joined the WTO in 2001.
"China distorts the free market by giving enormous subsidies to its producers and exporters," said House Ways and Means Committee chairman Dave Camp, R-Mich.
(Excerpt) Read more at ctpost.com ...
Not a good idea, in my opinion.
“Not a good idea, in my opinion.”
I vaguely remember the movie Rollover. Wonder if China will just cash out.
A feel good measure that may cost us in the long run. If anyone was concerned about American jobs, decrease the employers costs and paperwork associated with hiring US citizens.
In terms of unintended consequences, that might be the best outcome for us.
I keep forgetting Obama cares about American jobs,lower gas prices, Catholics,Jews, and the overall economy.
Retarded idea. Says Adam Smith in “The Wealth of Nations”.
Its a great idea - let Obama Smoot-Hawley himself and the Ds into political oblivion...
I call bulls#@t on free trade! At the founding of our republic the federal govnment ran mostly off tarrif duties. It was understood the one of the main functions of government was to protect American business from unfair trade practices. Under this protection America became a leading industrial power. It is working for China as we speak.
If state-managed economies are your thing, enjoy your Chevy Volt and those curly-cued lightbulbs.
The Chinese need lots of exports to maintain social stability. Let's hope the Obama doesn't lead the Chinese down the road the Japanese took in the 1930's.
The free-traders certainly don't, because they understand the term.
The Founders saw tariffs as a way to raise revenue, and some of them such as Hamilton, (correctly) argued that they could be used to protect infant industries.
I don't know where the notion of "fairness" came from, but you can probably guess.
On this issue I have to rely on people who I think are much more knowledgeable than I am. Can you give a synopsis on what you think are the pluses and minuses of this legislation?
The Chosen One is cabable anything wonderously destructive.
The larger problem is the notion that you can punish a country for artificially devaluing its currency using this method. The majority of evidence indicates that production simply moves from the target country to another low-wage country. So you are left in the same situation, if not worse . . . because you messed-up the chain.
(SARC)
“Retarded idea. Says Adam Smith in “The Wealth of Nations”.”
Would that be the same “Wealth of Nations” that plans to steal all of the worlds gold and silver and enslave everyone with phony, fiat money???
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