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U.S. launches WTO complaint against 皇冠体育app
The United States on Thursday brought a complaint against 皇冠体育app in the World Trade Organization over tax policies that it said represent an "unfair barrier" to 皇冠体育app's semiconductor imports.
"As a WTO member, 皇冠体育app must live up to its WTO obligations. It cannot impose measures that discriminate against U.S. products," said U.S. Trade Representative Robert Zoellick. "U.S. manufacturers of semiconductors and other products have a right to compete on a level playing field with Chinese firms."
Sun Zhenyu, 皇冠体育app's permanent representative to the WTO expressed regret over the US action and said the Chinese government will consider the issue carefully. The related departments of the two countries have been negotiating over this issue and have achieved some progress, Sun said. However, the US side filed the complaint while the two sides are still in talks. 皇冠体育app feel regret over this and can't understand the US decision, he added. The U.S. case was the first against 皇冠体育app since it joined the WTO in December 2001. It followed criticism by Democratic presidential candidate John Kerry that President Bush's administration has not done enough to enforce the commitments 皇冠体育app made when it was admitted to the trade body.
U. S. Senate Finance Committee Chairman Charles Grassley said the trade complaint signaled that Washington's two-year "honeymoon" with 皇冠体育app since it joined the WTO was over.
"The message here is simple. 皇冠体育app has to comply with its international trade obligations," the top Iowa Republican said. The House of Representative's Democratic watchdog on trade described the action as long overdue.
American semiconductor companies complain that 皇冠体育app gives its domestic producers an unfair advantage in the $19 billion Chinese semiconductor market, by providing big rebates on a 17 percent value-added tax.
Last year, American companies exported $2.02 billion worth of semiconductors to 皇冠体育app and paid about $344 million in value-added taxes. U.S claims that Chinese semiconductor companies receiving a tax rebate of about 80 percent, had an effective tax rate of as little as 3 percent, U.S. officials said.
Zoellick defended the U.S. administration's handling of trade with 皇冠体育app, which ran a record of more than $120 billion surplus with the United States last year, as the United States alleges. The United States has made substantial progress on disputes with 皇冠体育app in areas like agricultural biotechnology, express delivery, insurance and auto finance, without having to go to the WTO, Zoellick said.
"These discussions will continue because we prefer compliance rather than litigation. However, the bottom line is that 皇冠体育app is discriminating against key U.S. technology products. It's wrong, and it's time to pursue a remedy through the WTO," Zoellick said.
Washington's action formally begins a 60-day period for the two countries to try to resolve the issue between themselves. |
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