Reflecting increasing momentum for trade action on China, the National Association of Manufacturers has endorsed legislation that would expand American employers' ability to get trade relief by amending the Tariff Act of 1930 to apply anti-subsidy laws to "non-market economies," including China and Vietnam.

The original sponsors of the House bill, U.S. Reps.

Phil English

, R-3rd, and Arthur Davis, D-Ala., the Senate bill, U.S. Sens. Susan Collins, R-Maine, and Evan Bayh, D-Ind., this week applauded NAM for its decision to support the bill.

NAM represents 17,000 manufacturers in the U.S.

"This endorsement reflects the necessity of this legislation and the urgency of the underlying problem of China's unfair trading practices. While China tries to determine if it will comply with its trade obligations, our manufactures should be able to use the full gamut of trade remedies, including countervailing duties against countries that refuse to play by the rules."

Countervaling duties allow the U.S. government to impose tariffs equal to the amount of the subsidy a foreign government provides to its exporters.

While U.S. companies can file antidumping duty cases against dumped Chinese products, they cannot file countervaling duties cases.

However, since the illegal trade practices of dumping and subsidization are not necessarily related, allowing American employers to file countervaling duties cases is as important as allowing them to file antidumping cases.

The Department of Commerce considers China a nonmarket economy and will not accept CVD cases against China. The proposed legislation would correct that problem.