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TRADE WARS
US to step up trade pressure on China: Obama
by Staff Writers
Washington (AFP) Jan 24, 2012


US President Barack Obama said Tuesday he would step up pressure on China and other countries that unfairly subsidize exports and ship pirated goods to the United States.

In an ambitious push to rebuild the US manufacturing sector, Obama said his administration would launch a new unit dedicated to stopping unfair trade practices by rival economies.

"I will not stand by when our competitors don't play by the rules," Obama said in his annual State of the Union address.

"It's not right when another country lets our movies, music, and software be pirated. It's not fair when foreign manufacturers have a leg up on ours only because they're heavily subsidized."

Obama told Congress he would establish a new Trade Enforcement Unit "charged with investigating unfair trading practices in countries like China."

"There will be more inspections to prevent counterfeit or unsafe goods from crossing our borders," he added.

The threat of a tougher crackdown on unfair trade came as part of a new White House push to shore up American manufacturing and create jobs in the country.

Obama said his administration had already stepped up trade actions China and other countries to protect US goods producers.

In recent months the administration has launched investigations or sought to implement protective tariffs on wind towers, solar cells, a wide range of steel products, garlic, and other goods from China.

Meanwhile the government has attacked Chinese barriers to US exports like luxury cars and chicken meat.

"Over a thousand Americans are working today because we stopped a surge in Chinese tires," the president said.

But Obama said more was needed to rebuild the country's manufacturing sector, which employs just nine percent of the workforce.

"We can't bring back every job that's left our shores. But right now, it's getting more expensive to do business in places like China. Meanwhile, America is more productive," he said.

"We have a huge opportunity, at this moment, to bring manufacturing back. But we have to seize it."

He called on Congress to "make sure that no foreign company has an advantage over American manufacturing when it comes to accessing finance or new markets like Russia.

"Our workers are the most productive on Earth, and if the playing field is level, I promise you -- America will always win."

John Frisbie, president of the US-China Business Council, said they welcomed Obama's focus on trade relations with China.

"USCBC has long advocated a well-coordinated interagency approach to the commercial relationship with China, directed out of the White House. We look forward to hearing more details about how this new initiative will be structured," he said in a statement.

But he criticized Obama's claim of benefits for the country by restricting imports of Chinese tires.

"We disagree that the tariffs on imports of low-end Chinese tires have had any positive effect on American jobs or the American economy. All evidence suggests that the beneficiaries have been other low-end tire producers in Asia and Mexico," he said.

"Let's build on those strengths and not repeat tariff actions that hurt American consumers without first doing a fuller investigation of the full impact of the tire tariffs."

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Iran-China trade soars to top $45 bn: report
Tehran (AFP) Jan 25, 2012 - Trade between Iran and China soared by 55 percent on year to exceed 45 billion dollars in 2011, Tehran's envoy to Beijing was quoted as saying on Wednesday.

Ambassador Mehdi Safari said in Beijing that the annual trade figures showed a 16 billion-dollar increase in commercial ties with China since 2010, the official IRNA news agency reported.

China is Iran's top trade partner, with economic ties expanding in recent years partly thanks to the withdrawal of Western companies in line with sanctions against the Islamic republic over its contentious nuclear drive.

The Asian economic giant has also significantly strengthened its presence in Iran's oil and gas sector by signing a series of contracts worth up to 40 billion dollars in the past few years, in place of Western firms.

Iran is the third largest provider of oil to China.

China defended its economic and oil trade with Tehran as legitimate after the European Union imposed sanctions on the oil exports of the Islamic republic, which provides 11 percent of China's oil imports.



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TRADE WARS
Japan posts first annual trade deficit in 31 years
Tokyo (AFP) Jan 25, 2012
Japan announced its first annual trade deficit for more than 30 years on Wednesday after the March quake-tsunami and strong yen hit exports in 2011, while high fuel costs pushed up import bills. The first calendar-year deficit in goods since 1980 came to 2.49 trillion yen ($32 billion), the finance ministry said. Imports were up 12.0 percent by value on 2010, it said, particularly crude ... read more


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