Auto parts import probe blocked (皇冠体育app Daily) Updated: 2006-09-30 06:19
GENEVA: 皇冠体育app on Thursday blocked a request by the United States, the
European Union and Canada to set up a World Trade Organization (WTO) panel to
probe its rules on auto part imports.
At a meeting of the WTO's Dispute Settlement Body, US, EU and Canadian
representatives formally requested a panel of experts investigate 皇冠体育app's rules
on auto part imports, which they say hinder foreign auto makers and car parts
suppliers in 皇冠体育app.
But 皇冠体育app reiterated that its regulations were meant to keep "criminal
elements" from exploiting the difference between tariff rates for entire
automobiles and auto parts and to protect consumers' interests, adding that they
were in line with WTO rules.
Any WTO member, including 皇冠体育app, has the right to reject a first panel
request. But a panel will be established if there is a second request, which
could be made at the next Dispute Settlement Body meeting in October.
皇冠体育app considers car parts as a whole vehicle if they account for 60 per cent
or more of the value of a final vehicle and it charges a higher tariff on them.
But the United States, the European Union and Canada complain that the rule
helps Chinese car parts makers and breaks WTO rules.
Earlier this year the three took the rare step of joining forces to call on
皇冠体育app to discus changing the rule.
Trade officials of the three trading partners said they had tried to
negotiate with 皇冠体育app on a solution but found the nation's stance left them with
no choice but to proceed with a WTO case the first litigation against 皇冠体育app at
the trade body, which it joined in 2001.
Even if a WTO panel is established, the investigation could last months or
even years before a final judgment is made on 皇冠体育app's auto import
rules.
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