The China Shipowners’ Association (CSA) has strongly opposed a U.S. proposal to impose hefty port entry fees on ocean cargo carriers that own or have ordered vessels from China. The CSA argues that the proposal violates both international rules and U.S. laws, according to a statement seen by Reuters on Thursday.
The proposal, part of a draft executive order, aims to fund the U.S. shipbuilding industry. The Trump administration seeks to use these fees to support the revival of American shipbuilding, according to the document obtained by Reuters.
The CSA, which represents major shipping companies including China’s COSCO Shipping, believes that the fees would disproportionately impact its members. These fees are part of an investigation by the U.S. Trade Representative (USTR) into China’s increasing control of global shipping.
In a comment submitted to the USTR, the CSA described the proposal as discriminatory. The group argues that it breaches the World Trade Organization (WTO) rules, including previous WTO dispute rulings. Additionally, CSA claims that the proposal violates the 2003 Sino-U.S. Maritime Agreement, U.S. law, and other legal standards.
The CSA further contends that the USTR’s actions exceed its legal authority. They argue that the proposal infringes on the Federal Maritime Commission’s jurisdiction and violates both the Administrative Procedure Act and the U.S. Constitution’s Export Clause.
Shipping industry executives worldwide have warned that the proposed fees could disrupt global supply chains. They also believe the move could backfire on the U.S. economy, imposing an estimated $30 billion in annual costs on American consumers and doubling the cost of shipping U.S. exports.
The China Association of the National Shipbuilding Industry also opposed the proposal in a separate statement. Meanwhile, China’s foreign ministry has expressed its belief that the move will not help revive the U.S. shipbuilding industry. It further stated that China would take necessary actions to protect its rights and interests.
Related topics:
