The China Shipowners' Association (CSA) has opposed a U.S. proposal to impose significant port entry fees on ocean cargo carriers that own or have ordered vessels from China, citing violations of international rules and U.S. laws, according to a statement reviewed by Reuters on Thursday.
The proposal, part of a draft executive order seen by Reuters, aims to fund an American shipbuilding revival under U.S. President Donald Trump’s administration.
CSA’s members, including China’s COSCO Shipping, are expected to be heavily impacted, with the U.S. trade representative’s investigation highlighting China’s growing dominance in global shipping.
In a comment filed on the USTR site, CSA labeled the actions discriminatory, alleging breaches of World Trade Organization rules, WTO dispute settlement rulings, the 2003 Sino-U.S. Maritime Agreement, and various U.S. laws, including the Administrative Procedure Act and the Export Clause of the U.S. Constitution.
Global shipping executives have warned that the proposal could result in $30 billion in annual costs to American consumers and double the cost of shipping U.S. exports, potentially disrupting supply chains.
The China Association of the National Shipbuilding Industry and China’s foreign ministry have also expressed opposition, with the latter stating this week that the move would not revitalize the U.S. shipbuilding industry and that China would take steps to protect its rights.
China Shipowners' Association (CSA), based in Beijing, represents over 300 Chinese shipping companies and advocates for the interests of the Chinese maritime industry in global trade disputes.
COSCO Shipping, headquartered in Shanghai, China, is a major state-owned shipping company with a fleet of over 1,300 vessels, playing a key role in China’s Belt and Road Initiative.
U.S. Trade Representative (USTR), located in Washington, D.C., is a federal agency responsible for developing and coordinating U.S. trade policy, currently leading investigations into China’s shipping dominance.