PsychoticDan
30-03-2006, 20:09
WASHINGTON (MarketWatch) -- The United States and the European Union on Thursday took a long-simmering dispute over Chinese tariffs on auto parts to the World Trade Organization, charging that the duties violate global trade rules.
"While the United States has raised this issue repeatedly and sought the repeal of these measures, the problem has not yet been resolved," said U.S. Trade Representative Rob Portman. "We hope the filing of our request for consultations will lead to a speedy resolution of this issue."
The dispute stems from regulations that govern the importation of auto parts into China. Beijing requires that all automakers in China tally up the imported and domestic parts used in each vehicle. If the value or number of parts exceeds a specific threshold, the Chinese government assesses a tariff on each of the parts equal to the tariff on a complete automobile -- a duty as high as 28%. That's at least twice the amount of the tariff imposed on most auto parts, according to USTR.
Washington and Brussels say the duties discourage automakers from using imported auto parts. When it became part of the WTO, China promised to eliminate all local content requirements and to lower its tariffs on auto parts, the USTR said.
The case comes as the Bush administration faces mounting pressure from lawmakers to crack down on what they see as abusive Chinese trade practices ranging from manipulation of the yuan currency to lax enforcement of intellectual property rights.
"China failed to meet [its] promise in the auto parts sector, and it is high time that we call China on this. I have long urged USTR to take strong enforcement action. Today's action by Ambassador Portman is a welcome step in that direction," said Sen. Max Baucus of Montana, the senior Democrat on the Senate Finance Committee.
We really need to grow some balls when it comes to China.
"While the United States has raised this issue repeatedly and sought the repeal of these measures, the problem has not yet been resolved," said U.S. Trade Representative Rob Portman. "We hope the filing of our request for consultations will lead to a speedy resolution of this issue."
The dispute stems from regulations that govern the importation of auto parts into China. Beijing requires that all automakers in China tally up the imported and domestic parts used in each vehicle. If the value or number of parts exceeds a specific threshold, the Chinese government assesses a tariff on each of the parts equal to the tariff on a complete automobile -- a duty as high as 28%. That's at least twice the amount of the tariff imposed on most auto parts, according to USTR.
Washington and Brussels say the duties discourage automakers from using imported auto parts. When it became part of the WTO, China promised to eliminate all local content requirements and to lower its tariffs on auto parts, the USTR said.
The case comes as the Bush administration faces mounting pressure from lawmakers to crack down on what they see as abusive Chinese trade practices ranging from manipulation of the yuan currency to lax enforcement of intellectual property rights.
"China failed to meet [its] promise in the auto parts sector, and it is high time that we call China on this. I have long urged USTR to take strong enforcement action. Today's action by Ambassador Portman is a welcome step in that direction," said Sen. Max Baucus of Montana, the senior Democrat on the Senate Finance Committee.
We really need to grow some balls when it comes to China.