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EU, US sue China for breach of WTO rules
www.chinanews.cn 2006-04-03 15:58:19
Chinanews, Beijing, Apr.3(By Yu Lan) - The US and the EU lodged their
first joint complaint against China to the World Trade Organization (WTO)
on Mar. 30th, accusing China of maintaining illegal trade barriers on
auto part imports. Chinese Commerce Ministry spokesman Mr. Chong Quan
said today that the Chinese government expressed regrets regarding this
issue and was seriously studying the requests proposed by the EU and the
US.
On the afternoon of Mar. 30th Geneva time, EU and US permanent
ambassadors to the WTO respectively sent a letter to the Chinese
ambassador to the WTO Sun Zhenyu, proposing some requests for a
negotiation on China's policies on automobile industry development
according to the WTO dispute settlement mechanism.
The EU stated that China's levying the same duty on a complete vehicle
and auto parts whose value is equal to or exceed 60% of the complete
vehicle actually aimed at controlling the proportion of its domestic auto
parts. The EU deemed that such a policy disagreed with WTO rules.
The Chinese party pointed out that this policy actually aimed to prevent
foreign auto producers from disassembling complete vehicles for tax
evasion.
According to WTO rules, the disputing parties should first carry on two
months' bilateral negotiations. If they still fail to reach an agreement,
they may seek the WTO Dispute Settlement Body for arbitration.
To date, the EU and the US both stated that they hoped to find a
satisfactory solution before the WTO formally started its dispute
settlement procedures. EU Trade Commissioner Peter Mandelson indicated
that he had a clear desire and a hope to solve this issue in a friendly
way.
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