Log24

DOBBS: A New Jersey company is suing President Bush and U.S. trade representative Robert Zoellick for failing to protect American manufacturers. The company Motion Systems is challenging the White House to provide safeguards from a flood of Chinese imports. Lisa Sylvester reports.

(BEGIN VIDEOTAPE)

LISA SYLVESTER, CNN CORRESPONDENT: Motion Systems makes that little device used to make a dentist chair tilt up or down. It’s also used in scooters for senior citizens. Business was great before 2001, before a Chinese company developed a nearly identical unit.

BILL WOLF, MOTION SYSTEMS CORP.: The Chinese manufacturer produces the unit and sells it for less than one-third of what we sell it for. In fact, it’s sold for less than we can buy the materials for.

SYLVESTER: As sales dropped off, Motion Systems filed what is called a 421 petition at the International Trade Commission. That’s a safeguard provision written into the law when China joined the World Trade Organization. It’s supposed to protect American manufacturers from a surge of Chinese imports. The International Trade Commission agreed with Motion Systems that imports were causing market disruption and recommended quotas be put in place. But that never happened. Despite the ITC’s ruling the Bush administration concluded that restricted imports would hurt the U.S. economy.

JIM WOLF, MOTION SYSTEMS CORP.: We are being told by — to follow these set of rules. And then you follow those set of rules and then it’s OK to change the rules.

It’s like playing in a
crooked card game.

 No one wants to play.

SYLVESTER: This is not the only time this has happened. The International Trade Commission has reviewed five 421 China safeguard petitions. The ITC determined Chinese imports were disrupting the U.S. market in three cases but in each case the White House refused the ITC’s recommendation for quotas.

TOM PUTNAM, MOTION SYSTEMS CORP.: This is the largest decline in manufacturing since the great depression. If everybody doesn’t stand up and take notice of that, we are doomed.

SYLVESTER: Motion Systems is not done fighting. It has filed a lawsuit against President Bush and U.S. trade representative Robert Zoellick to reverse the decision. That case is pending.

SYLVESTER: We asked the U.S. trade representative’s office and the White House counsel for an interview, but they declined to comment. Lisa Sylvester, CNN, Washington.

(END VIDEOTAPE)