U.S. Challenges China's Wind Power Subsidies at WTO

December 23, 2010

On December 23, 2010 the United States requested consultations with the People’s Republic of China under the dispute settlement provisions of the World Trade Organization (WTO). The United States alleges that China is providing illegal import substitution subsidies for production of wind power equipment through a program known as the Special Fund for Wind Power Manufacturing. The United States is also challenging transparency-related issues regarding China’s failure to comply with its obligations to notify the subsidies under the WTO’s Agreement on Subsidies and Countervailing Measures.

The United States acted in response to a USTR investigation initiated after the United Steelworkers filed a petition under section 301 of the Trade Act of 1974, as amended. According to United States Trade Representative Ron Kirk, his office will continue to investigate other allegations raised in the petition, and may bring additional cases to the WTO.