According to foreign media reports, a policy group composed of American glass manufacturers is calling for stricter tariffs on imported glass from China. The group, led by the United Steelworkers union, is urging the U.S. to implement more stringent trade barriers against Chinese imports.
The American Manufacturing Alliance (AAM) recently released a report titled "Shockwaves: The Collateral Damage of China's Industrial Overcapacity on American Manufacturing and Factory Workers," stating the need for action to counteract the wave of cheap and subsidized exports threatening American jobs.
The report indicates that between 2003 and 2009, China's glass production doubled, with the industry's production capacity growing at the same rate. From 2004 to 2010, subsidies for glass produced by China's automotive parts industry amounted to approximately 1.6 billion U.S. dollars. Although most of the output was consumed domestically, this rapid expansion also propelled a sevenfold increase in exports between 2000 and 2007. "From 2000 to 2008, China's glass exports to the U.S. tripled, with its market share in the U.S. rising from 3% to 31% during the same period.
"According to data from the U.S. Bureau of Labor Statistics, the American glass industry lost nearly 40,000 manufacturing jobs during this time. The number of glass factories in the U.S. decreased from 35 to 21 between 2005 and 2015.
The report states that China currently leads in global glass production, with its exports of glass and glassware accounting for 28.7% of the global total in 2022, compared to 6.6% for the U.S.
The AAM calls for the revival of the import surge protection measures that expired when China joined the World Trade Organization in 2001, a move that contributed to China becoming a major global exporter.
Section 421 safeguard measures were designed to allow the U.S. to impose temporary tariffs to mitigate the disruption caused by the surge in imports from China's low-cost manufacturing base, welcomed by the global trading system 23 years ago.
The original idea was that this would be a transition period as China moved towards a more competitive market economy, which never materialized.
The AAM suggests that Section 421 should be reinstated and adapted to meet modern needs, as new import surges in industries such as steel and glass are threatened. It calls for allowing such tariffs on import surges from third-country factories of Chinese origin, such as those in Mexico or Vietnam, and to expedite the process of imposing tariffs before causing permanent damage to U.S. production. It also states that the relief measures should be broader and longer-lasting.
