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MEMA Prepares For Testimony On Section 301 China Tariffs

In its formal request to testify, MEMA highlighted that IP theft protections are critical but raises concerns about the use of tariffs to remedy the issue.

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On May 16, the Motor & Equipment Manufacturers Association (MEMA) will testify on the Section 301 proposed China tariffs as part of a three-day public hearing before the United States Trade Representative (USTR). USTR has proposed a 25 percent tariff on a wide variety of products imported from China, including certain motor parts and equipment as part of the Section 301 action to remedy intellectual property (IP) theft. In addition to the testimony, MEMA has submitted written comments on the issue.

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In its formal request to testify, MEMA highlighted that IP theft protections are critical but raises concerns about the use of tariffs to remedy the issue.

“Though we support the administration’s efforts to protect intellectual property laws and eliminate China’s restrictive and discriminatory licensing requirements, tariffs on motor parts and equipment manufacturers will be ineffective in obtaining these goals. To the contrary, such prohibitively high tariffs on these products will disproportionately harm U.S. businesses, including the motor parts and equipment manufacturers we represent,” the letter said.

MEMA submitted its comments to USTR in response to the Notice of Proposed Determination and Request for Comments issued last month regarding actions related to trade practices of China. The comments ask USTR to remove certain motor vehicle materials and parts imported from China from the proposed list of tariffs. MEMA included an aggregated, non-exhaustive list of products included in the USTR’s proposal that should be excluded. The primary reasons are these products used in the motor vehicle supplier industry either as part of the manufacturing production line or as materials needed to manufacture components.

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The full comments can be viewed here.

The Proposed Determination is based on the USTR’s findings of intellectual property (IP) theft and technology transfer pursuant to its Section 301 investigation. This is one of several actions by President Trump against China that seeks to impose $50 billion in tariffs on imports. Contained in the Proposed Determination is the list of possible Harmonized Tariff Schedule codes for more than 1,300 products imported from China that may be subject to a 25 percent tariff.

This is just one of many leadership initiatives MEMA has taken recently on important trade issues, including Section 301, Section 232 steel and aluminum tariffs and the North American Free Trade Agreement (NAFTA) renegotiations. For more details visit the MEMA Trade Resources Page.

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