The China Shipowners’ Association (CSA) has publicly expressed its disapproval of a recent U.S. proposal aimed at imposing significant port entry fees on ocean cargo carriers that either own or have ordered vessels from China. In a statement reported by Reuters, the CSA argues that such actions contravene international trade regulations and U.S. laws.
The proposal, which appears to be part of an initiative from the administration of former President Donald Trump, seeks to partially fund a resurgence in American shipbuilding through these fees. According to a draft executive order reviewed by Reuters, the fees would specifically target companies like COSCO Shipping, which is among the CSA’s members and likely to face severe financial impacts as a result of these proposed charges.
In their remarks submitted to the U.S. Trade Representative (USTR), the CSA categorized the potential measures as discriminatory, asserting that they breach World Trade Organization (WTO) rules and relevant dispute settlement decisions. Furthermore, the proposed fees are said to contravene the 2003 Sino-U.S. Maritime Agreement and overstep the legal limitations of the USTR, infringing on the authority of the Federal Maritime Commission.
The CSA also claims the proposal breaches the Administrative Procedure Act and the Export Clause delineated in the U.S. Constitution. Global shipping leaders have cautioned that if implemented, the proposal could disrupt supply chains and ultimately result in increased costs for American consumers, potentially adding $30 billion annually and inflating the price of shipping U.S. exports.
Meanwhile, the China Association of the National Shipbuilding Industry has echoed the CSA’s opposition. Additionally, China’s foreign ministry has indicated that this initiative is unlikely to revitalize U.S. shipbuilding, while asserting that China will take necessary measures to defend its rights and interests.