TBO.com - TBO is Tampa Bay Online

WTO Condemns China In Dispute With U.S. Over Car Parts

ADVERTISEMENT

By BRADLEY S. KLAPPER, The Associated Press

Published: February 14, 2008

GENEVA - The World Trade Organization on Wednesday issued its first official condemnation of Chinese commercial practices, siding with the United States, the European Union and Canada in a dispute over car parts.

The WTO found that China was breaking trade rules by taxing imports of auto parts at the same rate as foreign-made finished cars, according to a copy of the ruling's conclusions obtained by The Associated Press.

In the sweeping decision, the three-member WTO panel found against China on nearly every point of contention with the U.S., the 27-nation EU and Canada. The panel found that Chinese measures "accord imported auto parts less favorable treatment than like domestic auto parts" or "subject imported auto parts to an internal charge in excess of that applied to like domestic auto parts."

Its final message to Beijing: "The dispute settlement body requests China to bring these inconsistent measures as listed above into conformity with its obligations."

The three trade powers argued that the tariff was discouraging automakers from using imported car parts for the vehicles they assemble in China. As a result, car parts companies had an incentive to shift production to China, costing Americans, Canadians and Europeans their jobs, they said.

The ruling, to be officially released later this year, will be closely watched by makers of everything from batteries and brakes to seats and spark plugs on both sides of the Atlantic, including U.S.-based Delphi Corp., General Motors Corp.'s former parts supplier, and Robert Bosch GmbH in Germany.

The decision is officially only an "interim ruling." But no panel has ever changed its findings between interim and final decision.

Share this:

Loading Comments...

Email Print

ADVERTISEMENT