"US Creates Task Force to Target Unfair Trade Practices"

US President Barack Obama has created a new trade task force to investigate and crack down on unfair practices by American trading partners.

The move comes amid concerns that unfair trading practices, especially by China, were harming US businesses. Policymakers have accused Beijing of keeping its currency artificially low in a bid to help China's exporters. The International Trade Enforcement Center will aim to ensure US businesses have "a level playing field."

"Robust monitoring and enforcement of US rights under international trade agreements, and enforcement of domestic trade laws, are crucial to expanding exports," the executive order signed by President Obama said.

Growing tensions

Trade relations between the US and China have been under strain in recent years. While the US economy has slowed, China has witnessed robust growth powered by the success of its manufacturing and export sectors.

However, US policymakers and businesses have accused China of giving an unfair advantage to its exporters by keeping the yuan's value low, a move which makes Chinese goods cheaper to foreign buyers. At the same time, some sectors such as the solar panel industry have argued that Chinese manufacturers have benefited from government subsidies which helps them keep their costs low.

President Obama said the US was working to ensure that its partners abide by international trade rules. He said the new unit will "bring the full resources of the federal government to bear to investigate and counter unfair trade practices around the world, including by countries like China."

( Source : http://www.bbc.co.uk/news/business-17200621 )

“Japanese Auto Parts Firms to Pay US Anti-Trust Fine”

Japan's Yazaki Corporation and Denso Corporation have agreed to plead guilty and pay fines for fixing prices of parts supplied to US manufacturers.

Yazaki will pay $470m (£300m), the second-largest antitrust fine in US history, while Denso has agreed to pay $78m. The two auto part makers have been accused of fixing prices for as long as ten years.

Four Yazaki executives will also serve up to two years in a US prison. "Our investigation is still active and ongoing," said Sharis Pozen of the Department of Justice's Antitrust Division.

'Pernicious cartel'

Yazaki and Denso are among the world's largest auto part suppliers. Any conspiracy to fix prices of parts by such major players is likely to have an impact on the overall cost of manufacturing the vehicles and also affect the selling price.

The Justice department's Ms Pozen said the consumers were financially hurt and authorities were working to ensure that such instances do not happen in the future.

"Criminal antitrust enforcement remains a top priority and the Antitrust Division will continue to work with the FBI and our law enforcement counterparts to root out this kind of pernicious cartel conduct," she said.

The Justice department did not give details of which US manufacturers were affected and how much extra they had to pay.

Yazaki said that it was fully cooperating with the US authorities and had also launched an internal probe into the matter.

"In order to prevent any recurrence, the company has intensified its various efforts including conducting thorough internal investigations, reviewing internal rules, conducting regular educational programs and monitoring activities," the firm said in a statement.

( Source : http://www.bbc.co.uk/news/business-16803876 )