WTO must be firm with China

In a move endorsed by “Critical Cargoes,” U.S. Trade Representative Ron Kirk announced this week that the United States and the European Union are initiating dispute settlement procedures in the World Trade Organization (WTO) regarding China’s export restraints.
China’s export restriction of nine key raw materials has distorted trade and caused economic injury to a great number of major U.S. shippers. That’s  also a position shared by The National Association of Manufacturers,  (NAM) which has expressed  strong support of international dispute  settlement procedures.
NAM ‘s vice president for International Economic Affairs, Frank Vargo, said that NAM has raised this issue repeatedly with U.S. government officials because China’s actions have had the effect of subsidizing Chinese producers by allowing them to pay a lower price for those materials than U.S. companies.
“In our view, this is a clear violation of commitments China made when joining the WTO,” he said. 
It is worth noting too, that The NAM supported China’s membership in the WTO so that it would be bound by international trade rules, including the provisions for resolving trade disputes. 
We agree that the decision by the Obama Administration to file this case is in fact a further sign of maturity in the U.S.-China trade relationship.