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WTO Probes into China’s Misdemeanors
The WTO has launched the first official investigation of illegal trade practices in China. A special commission is to find out whether Chinese tariff rates on foreign autoparts imports violate WTO rules. Should any violations be discovered, China may come under sanctions.
The United States, the European Union and Canada accuse China of protectionism in the motor car industry. China has recently raised autoparts import rates up to the level of rates on ready-made cars. The U.S. and the EU claim that entering the WTO in 2001 China pledged not to use the same rates on cars and autoparts. Americans say that the tariffs hamper the use of import autoparts in assembling new cars in China. Beijing claims that the move helps keep back criminals from capitalizing on the difference between auroparts tariff rates and car rates.
The expert group is to gather information to present the first report in 18-months’ time. Investigation may last a few years.
This trade row is likely to become only the first one as Chinese economy grows 9 percent a year, some of the sectors developing even more rapidly. The West is worried about the growing trade disbalance with China. The EU’s trade deficit with China reached € 106 billion ($134 billion) last year. In the U.S., it wass $202 billion in 2005, the biggest trade deficit the United States has ever had with any other country.
The United States now demands that China give the WTO full details of all its subsidizing programs and abolish all the measures that run against rules of the organization.
www.kommersant.com
All the Article in Russian as of Oct. 28, 2006
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