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China, US dialogue on steel requested
(AP)
Updated: 2005-12-22 15:20

The United States has suggested to China that the two countries launch a bilateral dialogue on the steel sector to head off potential trade disputes, a senior U.S. official said on Thursday.

Under Secretary of Commerce for International Trade Franklin Lavin said he had put forward the idea of creating a mechanism for discussing steel, similar to those in place for energy and telecommunications, in meetings this week with Chinese officials.

"We've had a number of steel issues that have come up, formal trade disputes, and wouldn't we be better if we looked at these issues in a broader economic context and not simply wait till we got to a trade dispute?" Lavin said at a news briefing.

"So let's look at issues such as tax and subsidy and capacity and try to have some kind of discussion on these issues."

Lavin said such a dialogue could take place through the Joint Commission on Commerce and Trade (JCCT), a bilateral consultative mechanism. He did not say how the officials had responded.

The United States and China last month defused a row over Chinese textile exports by agreeing growth caps for the period 2006-2008. Some analysts fear steel could be a future flashpoint given the rapid expansion of China's production capacity.

Lavin also called on Beijing to reduce non-tariff barriers to trade in such industries as telecoms, film and pharmaceuticals to allow more U.S. imports.

He said increasing exports to China was the most constructive way of addressing the gaping U.S. trade deficit with China, which Lavin said he expects to reach $200 billion this year.



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