The W.T.O. and the U.S. Legislation in Regard to Chinese Car Imports

Abstract

This memo presents a business law case related to the topic of the U.S. trade with China in the framework of W.T.O. legislation. The U.S.A. filed a broad trade case against China at the W.T.O. in September 2012. The article entitled “Trade Case May Produce Few Results” is dedicated to this case and it also deals with the issues of Chinese car imports to the U.S.A.

The article expresses the trade and legal differences that the U.S. and China have over Chinese imports of autos and auto parts.

Memo: The W.T.O. and the U.S. Legislation in Regard to Chinese Car Imports

TO: Online Students, BUS&201 Business Law, (Formerly GB 202)

FROM:

DATE: February 11th, 2013

REF: The W.T.O. and the U.S. Legislation in Regard to Chinese Car Imports

This memo presents a business law case related to the topic of the U.S. trade with China in the framework of the W.T.O. legislation. The U.S.A. filed a trade case against China at the W.T.O. in September, 2012. The article entitled “Trade Case May Produce Few Results” is dedicated to this case and it also deals with the issues of Chinese car imports to the U.S.A. in violation of the World Trade Organization policies.

The author communicates that the legal case initiated by the U.S. government will have little immediate impact on companies and jobs in the U.S. However, it is one of the few available legal options since China’s car industry faces overproduction problems and attempts to increase its sales overseas. The article relays the views of the Obama administration officials stating that they make their best efforts to win cases like this at the W.T.O., using all “enforcement options and dialogue that gets results for American workers” (Bradsher, 2012).

The ideas expressed in this article describe some key issues between the two largest world economies. Since the car market is one of the foundational market sectors in the U.S. economy, its condition determines the future of hundreds of thousands of jobs. So the positive outcome for the U.S. would be very desirable. The article gives food for thought, providing a broader outlook on the whole system of the global trade operations conducted in the framework of the W.T.O. It is very helpful to keep in mind the process of economy globalization that naturally leads to the emergence of such issues as dumping policies, inequality in salaries in countries like China. It leads to cheap labor and lowers production costs. That results in distorted trade volumes between the U.S. and China.

Business law becomes more and more globalized, which has much to do with operation of the World Trade Organization. It was founded in 1995 with the goal to deal with trade rules on a global scale. Participation in this international organization is beneficial for economically developed countries like the USA and the European Union countries. Their local productions often suffer when countries like Brazil, Russia, and China export their products at dumped prices. Even though the American government attempts to protect the U.S. home market from subsidized products, cheaper exported goods is the price that the country often has to pay for being a W.T.O. member.

The knowledge gained from this article helps to understand better some global processes. It is directly connected with the area of business and legal environment since international trade and regulations are a vital part of the economic and legal life. This knowledge can be applied when dealing with issues regarding local production regulations, foreign trade and issues related to the W.T.O.