Union groups in the US wait for President Barack Obama’s decision concerning the import of auto parts from China.
Earlier this year the union groups tried to convince the President that importing auto parts from China, which are unfairly subsidized, will only means losing 1.6 million jobs in the US. With the November 6th presidential election quickly approaching, the groups are waiting for Obama’s decision.
“It’s been basically seven full months. That’s plenty of time to evaluate the merits of the case, and I do think the time to make a decision is now, absolutely,” said Scott Paul, executive director of the Alliance for American Manufacturing.
The Economic Policy Institute estimates that since 2001 the Chinese auto parts industry received more than $27.5 billion in subsidies, the second cause for the job losses in the US auto parts sector. Recent data shows that the U.S. trade deficit with China reached in July a record of $29.4 billion.
Labor groups have urged the President to file a case against Chinese auto part subsidies at the WTO or even ‘self-initiate’ US countervailing and anti-dumping duty proceedings against Beijing. The group hope that the approaching election will prompt the President to finally take a decision concerning this issue.