Obama to Ask WTO To Sanction China Over Illegal Auto Export Subsidies

WASHINGTON - According to an article in the Los Angeles Times, the Obama administration is set to launch a new enforcement action with the World Trade Organization against China, alleging that the Asian economic giant is putting U.S. manufacturers at a competitive disadvantage by illegally subsidizing exports of autos and auto parts.

The president, blending his roles as candidate and incumbent officeholder, will announce the move at the first of two campaign stops scheduled Monday in Ohio, a state where 1 in 8 jobs is tied directly or indirectly to auto manufacturing.

According to administration officials, who provided details about the case on the condition of anonymity before the formal announcement is made, China has provided at least $1 billion in export-contingent subsidies between 2009 and 2011 in violation of WTO rules and the nation's agreement upon joining the organization in 2001. The subsidies contribute to the outsourcing of U.S. auto-parts production to China, the officials said.

The WTO action follows one in July in which the U.S. challenged China for imposing duties on more than $3 billion in American-produced automobiles. The administration is also announcing Monday that it will request that the WTO form a dispute settlement panel to consider that case.