According to a Thursday statement, the China Shipowners' Association is against a U.S. proposal that would impose hefty entry fees at ports on ocean cargo carriers who own vessels or have ordered them from China. The association says it violates both international laws and U.S. law.

According to a draft of an executive order, the Trump administration wants to use these fees to pay for a comeback in American shipbuilding.

COSCO Shipping, a member of the CSA, is expected to be the most affected by the proposed fees by the U.S. Trade Representative as part of the agency's investigation of China's growing dominance of global shipping.

In a submission on the USTR website, CSA described the proposed actions as discriminatory. They also said that they violated WTO rules and WTO rulings regarding dispute settlement.

CSA also said that the USTR's action violates U.S. law and regulations.

The group stated that the proposals exceeded the statutory authority granted to the USTR. They also violated the Administrative Procedure Act, which governs agency actions, and the Export Clause in the U.S. Constitution.

Shipping executives warned that this proposal could cause chaos in the supply chain and have a negative impact on the United States, as it would cost $30 billion annually to American consumers. It would also double the shipping costs for U.S. exported goods.

In a separate statement, the China Association of the National Shipbuilding Industry said that it was opposed to the proposal.

The Chinese Foreign Ministry said that the U.S. Shipbuilding Industry would not be revitalized by the Chinese move and that China will take measures to protect its interests and rights. Reporting by Lisa Baertlein, Los Angeles; editing by Rod Nickel

(source: Reuters)