- CSA calls U.S. port entry fees discriminatory, violating WTO rules and U.S. laws.
- The fees could add $30 billion in costs, disrupting supply chains.
- China’s shipbuilding industry also opposes the proposal.
The China Shipowners’ Association (CSA) has voiced strong opposition to a U.S. proposal to impose substantial port entry fees on ocean cargo carriers that own or have ordered vessels from China. According to a statement obtained by Reuters, the association contends that the move breaches international regulations and U.S. legal frameworks.
This proposal, reportedly part of a draft executive order under the Trump administration, aims to finance a revival of U.S. shipbuilding. However, CSA argues that these measures unfairly target Chinese shipping firms, including COSCO Shipping, one of the biggest stakeholders in the global maritime sector.
Legal and Trade Violations Alleged
In its formal response on the U.S. Trade Representative (USTR) website, CSA labeled the proposed fees as discriminatory and violative of World Trade Organization (WTO) rules. The association also cited violations of the 2003 Sino-U.S. Maritime Agreement, as well as breaches of U.S. domestic laws.
Additionally, CSA asserts that the proposal exceeds the USTR’s legal authority, encroaches upon the jurisdiction of the Federal Maritime Commission (FMC), and fails to meet regulatory requirements under the Administrative Procedure Act. The group further claims that the plan infringes upon the Export Clause of the U.S. Constitution, which prohibits taxation on exports.
Industry Concerns Over Economic Impact
Global shipping executives warn that these proposed measures could disrupt global supply chains and increase costs for American businesses and consumers. Analysts estimate that the policy could add up to $30 billion annually in expenses for U.S. consumers while doubling the cost of shipping exports from the United States.
Support from the Chinese Shipbuilding Industry
In a separate statement, the China Association of the National Shipbuilding Industry also expressed opposition to the proposal, further reinforcing the concerns raised by CSA.
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Source: Reuters
