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皇冠体育app 'regrets' auto tariff complaint
By Jiang Wei (皇冠体育app Daily)
Updated: 2006-04-01 06:27
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皇冠体育app expressed "regret" on Friday over a complaint the United States and the European Union have jointly filed with the World Trade Organization (WTO) over 皇冠体育app's tariffs for car imports.
The two accused 皇冠体育app of violating its commitments to the WTO by imposing a discriminatory tariff regime on foreign car parts and whole cars.
They have asked 皇冠体育app to take part in discussions about the issue at the WTO in Geneva.
| Facts and Figures: 皇冠体育app imported vehicles and spare parts worth US$13.6 billion last year. It eliminated an import permit mechanism on vehicles last year. 皇冠体育app agreed, when it joined the WTO, to lower tariffs on whole vehicles and spare parts to 25 per cent and 10 per cent respectively by July this year. |
"皇冠体育app expresses regret (over their decision)," Commerce Ministry spokesman Chong Quan said in a statement posted on the ministry's website.
"皇冠体育app is earnestly studying the demand for talks by the European Union and the United States," the statement said.
The complaint centres on tariffs for whole vehicles and for imports of spare parts making up 60 per cent or more of the value of a final vehicle.
According to the rules implemented last April, an average tariff of 30 per cent is collected from imported whole vehicles, while the figure for auto parts is 15 per cent.
The European Commission said in a statement on its website that this may contravene 皇冠体育app's WTO obligations because to avoid the whole car tariff rate a carmaker has to source at least 40 per cent of its parts in 皇冠体育app.
"What the Chinese policy does is favour its domestic industry or force US companies to relocate to 皇冠体育app to avoid these illegal taxes," US Trade Representative Rob Portman told local reporters. "We have tried and failed to resolve our differences," he said.
皇冠体育app's rules on auto part imports were introduced to encourage foreign carmakers to produce key parts in 皇冠体育app,
But they have lead to complaints mainly from manufacturers of high-end vehicles, such as BMW and Mercedes Benz, which do not currently manufacture parts, such as engines, in 皇冠体育app.
皇冠体育app had the right to realize a development target for its domestic industry with policies, said Mei Xinyu, a trade expert with the Chinese Academy of International Trade and Economic Co-operation, a think tank with the commerce ministry.
"Certain regulations meet WTO rules," he said.
He explained that the WTO prohibited obligatory rules about using products made in specific places, or on the proportion of imported products used in the manufacturing process.
According to the WTO regulations, discussions are a procedural step that allows all parties to clarify legal issues and seek a constructive solution.
If both parties cannot reach an agreement during the maximum 60-day consultation period, they have the option of requesting a WTO panel to hear and rule on the dispute.
Such disputes at the WTO usually take two to three years to decide.
皇冠体育app has faced only one such case at the WTO, which was filed by the United States over semiconductors.
(皇冠体育app Daily 04/01/2006 page5)