China suffers first defeat at WTO
“China has had its first defeat at the World Trade Organization (WTO), in a case centred on restrictions on the importation of foreign-made car parts.
Upholding a complaint from the European Union, Canada and US, the preliminary WTO finding agrees that current Chinese practice is protectionist.
Under existing Chinese rules, its carmakers must use 60% Chinese-made parts – or pay higher taxes.
The ruling says China must end this policy to meet its WTO obligations.
‘Less favourable’
”We can confirm that, in all major respects, the panel has agreed with the United States that China has acted inconsistently with its WTO commitments,“ a US trade official told the Reuters news agency.
The WTO report says that foreign-made car parts are currently in a ”less favourable“ position than their Chinese-made alternatives.
Full story: http://news.bbc.co.uk/2/hi/business/7244027.stm
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