US files another WTO complaint against China which China will ignore

Associated Press reports that yesterday the Obama administration pretended to be doing something about our trade imbalance with China. It filed its first case against China at the WTO. This case charges China with putting duties on certain raw materials exports used in steel production so that their steel products will be less expensive. Here is a selection from that report:

The United States on Tuesday filed its first unfair trade case against China before the World Trade Organization, accusing the Asian power of restricting exports of key raw materials needed for the production of steel, aluminum and other products.

U.S. Trade Representative Ron Kirk said at a news conference that the U.S. is "deeply troubled at what appears to be a conscious policy to create unfair advantages for Chinese industries."

The European Union also filed its own case on the matter, setting the stage for what could be a key showdown among the world's major trading countries.

This case will join the many filed by the Bush administration which China simply ignored:

• Bush won a case at the UN that Chinese tariffs on foreign auto parts were too high. According to WTO rules, their tariffs on foreign autoparts (about 25%) have to be lower than their tariffs on foreign vehicles. Even though the United States won the case, China is still refusing to lower its tariffs. (Here's a December 2008 update on that case.)
  
  
• Bush filed a case against Chinese export subsidies on some products. China had agreed to give up all export subsidies when it joined the WTO. In response, China has been steadily hiking its export subsidies. In fact they just raised their export subsidies on textiles from 15% to 16%. (Here's a January 2009 update on that case.)

The WTO requires that the United States engage in unilateral free trade which leads to huge trade deficits. It is not worth saving. We need a new international trade system based upon balanced trade. America could get the world there, simply by adopting Warren Buffett's Import Certificates plan.