The U.S. grain export industry – and the transportation sector broadly – are increasingly concerned about the USTR’s proposed Section 301 measures in connection to the “Investigation of China's Targeting of the Maritime, Logistics, and Shipbuilding Sectors for Dominance”. The proposed action promises massive fees to be applied to Chinese-built vessels docking in U.S. ports. The proposal has several conceptual flaws and will likely inflict costs on U.S. consumers and producers. Further, the measure will likely act as a taxpayer-funded subsidy to the South Korean and Japanese shipbuilding sectors and South American and Black Sea grain industries. The White House’s newly proposed Office of Shipbuilding also...

TAGS – Asia, China, North America, Macroeconomics, Freight