Chinese tax policy could help WY Trona industry
Trona-Soda Ash from Southwest Wyoming
by Pinedale Online!
July 3, 2007
U.S. Senator Mike Enzi, Representative Barbara Cubin, and former Senator Craig Thompson, all R-Wyo., have been working for almost a decade with American trade negotiators to confront soda ash trade subsidies unfairly benefiting foreign soda ash industries. Senator Enzi just put out a news release saying China’s finance ministry plans to implement a policy that could lead to a strengthening of global soda ash prices, which would greatly benefit the trona industry in southwest Wyoming.
The majority of soda ash is used to make glass. It is also used to make a variety of chemicals, followed by soaps and detergents, distributors, the removal of sulfur from smokestack emissions, paper and paper pulp production, water treatment, and other assorted uses. These other uses include oil refining, making synthetic rubber, and explosives.
China announced that starting July 1, it would eliminate or reduce tax rebates on more than 2,000 goods, including a 13 percent value added tax (VAT) rebate on soda ash. China is the world’s largest producer of synthetic soda ash. Without the special tax break Chinese soda ash will be more in line with the price of Wyoming soda ash. With elimination of the VAT rebate, global price distortions that were caused by the special tax break will be eliminated and Wyoming soda ash will have a fairer market in which to compete.
“I am pleased to see that the Chinese government has taken the necessary steps to level the playing field for Wyoming soda ash. As a U.S. Senator, I will work to assert fair trade policies that will protect and ensure the vitality of Wyoming's soda ash industry and our other mining exports,” said new U.S. Senator John Barrasso.
Soda ash is a widely used and important commodity in the United States. Because so much soda ash is used by so many industries, monthly soda ash production information is one of the pieces of information used to determine the condition of the United States economy.
The largest trona deposit in the world is in the Green River Basin of Southwest Wyoming, approximately 100 miles south of Pinedale.
Related Links:
Mineral Information Institute
Senator Mike Enzi's website
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