April 09,2007

Grassley Welcomes U.S. Trade Cases Against China Over Intellectual Property

The Office of the United States Trade Representative announced today that the United States
will file World Trade Organization (WTO) cases against China, one over deficiencies in China’s
legal regime for protecting and enforcing copyrights and trademarks on a wide range of products,
and another over China’s barriers to trade in books, music, videos and movies. Sen. Chuck Grassley,
ranking member of the Committee on Finance, with jurisdiction over international trade, made the
following comment on the case.

“I’m glad to see this action. Intellectual property drives a big part of our economy. We need
to defend U.S. companies against abuse and hold our trading partners to the commitments they made
in joining the WTO. The ability to protect intellectual property is a hallmark of a mature economy
and responsible trading partner.

“Litigation isn’t always the answer, but when informal negotiations don’t work, we need to
stand up for ourselves. The WTO gives us a forum to assert our rights. The Administration is making
good use of that forum. This is the latest in a number of cases the United States has brought to hold
the Chinese accountable for trade-distorting policies. In each case, we filed a WTO complaint as a
last resort after informal efforts at resolution failed. That’s the way it should be. American
businesses and consumers stand to lose if we overreact. But when China continues to refuse to play
by the rules, then we need to take strong action, like we’re doing today.”