Autos Go To WTO

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The auto trade dispute has been put up a gear, and the Age reports that:

    “In the first world trade case filed against China, the Bush Administration will join Canada and the European Union in charging the Asian giant with discriminating against auto parts imports”.

China is charged with charging tariffs of 25 percent on auto parts imports (in an effort to help the domestic industry). US Trade Representative Susan Schwab is quoted as saying:

    “We have tried to resolve this issue through consultations, as we always prefer to negotiate rather than litigate…But China has demonstrated no willingness to remove its unfair charges.”

The People’s Daily notes that the auto parts market in China is worth US$19 billion a year.

It will be interesting to see where the case leads, and how far it is used as leverage over other trade issues such as RMB valuation, as well as ongoing barriers to China’s textile and shoe exports.

See news sources:

    US joins in taking China to WTO over auto parts
    The Age – Melbourne,Victoria,Australia
    IN THE first world trade case filed against China, the Bush Administration will join Canada and the European Union in charging the Asian giant with …

    EU plans first WTO litigation against China
    People’s Daily Online – Beijing,China
    The European Commission said it will launch the first ever litigation against China at the World Trade Organization (WTO) by seeking a settlement panel for an …

2 Responses to “Autos Go To WTO”

  1. Archive » The Antipodean (Free Trade) Approach| China Business Blog Says:

    […] al, Trading As the EU and US battle with China over cheap shoes, textiles and auto tariffs, New Zealand is busy negotiating a free trade agreement. The Dominion Post reports […]

  2. Archive » Back To WTO| China Business Blog Says:

    […] Hot on the heels of a US$214 billion trade deficit with China, the US has launched another WTO salvo. The FT reports: “The US on Friday launched a major trade dispute with Chi […]

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