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 …