Meehan Applauds Bill to Tax Chinese Imports

Congressman Patrick Meehan is applauding a bill to slap tariffs on goods from China and other countries that subsidize production.  The bill passed in the U.S. House Tuesday by bi-partisan vote (370 in favor, 39 against and 24 not voting).

Broad support for the bill follows a court ruling last year that said imposing such taxes on Chinese and other imports was not permitted under U.S. Law. Congressman Jim Gerlach (R-PA6) also voted to pass the bill to impose tariffs on subsidized imports.

Congressman Patrick Meehan (R-PA7) issued the following press release after the House passed HR 4105:

U.S. Rep. Patrick Meehan (R-PA7) (Tuesday) applauded House passage of a bipartisan bill to combat China’s unfair trade practices and create a level playing field for American workers.

“America’s workers are the best in the world, and given a level playing field and trade partners that play by the rules, they will succeed,” Meehan said. “China, however, is not playing by the rules, and unfairly subsidized exports to the U.S. are hurting American businesses and costing American jobs. This bipartisan bill will restore our ability to enforce trade laws and stand up for American workers.”

H.R. 4105 reaffirms the ability of the U.S. Department of Commerce to apply duties against non-market economies like China and Vietnam. A 2011 federal court ruling held that the Commerce Department did not have the authority to apply “countervailing” – or anti-subsidy -- duties on Chinese imports that are unfairly subsidized by the Beijing government. These subsidies give Chinese imports to the U.S. an unfair advantage against unsubsidized American products.

According to the Reuters news service, the December 2011 decision in GPX v. United States

“endangered countervailing duties on about two dozen goods from China and Vietnam worth more than $4 billion in trade, as well as potential new duties in cases involving solar panels and wind turbine towers from China. Supporters says current duties protect some 80,000 American jobs. They cover steel, aluminum, paper, chemicals and other products from China and plastic shopping bags from Vietnam.” (Reuters, 3/6/12)

This bipartisan legislation passed the Senate (Monday), and is expected to be signed into law by the President.

What do you think? Is it a good trade-off to "level the playing field" for American workers, while potentially driving up the cost of many imported goods? Tell us in the comments.