In response to the ruling on the dispute between China and the United States, the European Union and Canada regarding the auto parts disputes announced by the World Trade Organization (WTO) Appellate Body on the 15th, Yao Jian, spokesman of the Chinese Ministry of Commerce, made a formal response yesterday.
Yao Jian pointed out that China has noted that the Appellate Body has supported China’s appeal request in terms of import tariffs on CKD/SKD and has corrected the previous erroneous ruling of the Group of Experts. China welcomes this, but It also regrets that the Appellate Body upholds the other parts of the Panel’s decision.
The WTO Appellate Body report basically maintained the results of the panel’s ruling in July, arguing that the Chinese measures involved violated the national treatment. However, it overturned the panel’s decision that China’s taxation of complete sets of parts and semi-completed spare parts in violation of the WTO’s commitments.
On April 1, 2005, China began to implement the "Administrative Measures for the Import of Auto Parts That Constitute the Characteristics of Complete Vehicles", levying the same tariff (28%) as the entire vehicle for parts that equal or exceed 60% of the total vehicle value, instead of China. The 10% to 14% tax rate specified in the WTO accession agreement. Later, the European Union, the United States, and Canada believed that China was suspected of discriminating against foreign taxation on imported auto parts, and was intended to encourage Chinese auto makers to use domestic auto parts.
The dispute concerning this auto parts continued for more than two years. In the event that China and the United States, the European Union, and Canada negotiated on the dispute but failed to reach an agreement, the dispute was resolved on October 26, 2006. The organization set up an expert group to examine the case. On July 18, 2008, the expert group announced the ruling report and held that China's relevant regulations violated WTO rules. On September 15, China appealed to the WTO Appellate Body.
The European Union and the United States yesterday commented on this case, which was seen by the outside world as China’s first losing case after its WTO accession.
U.S. Trade Representative Susan Schwab said that he hopes that China will immediately implement its WTO obligations and remove unfair and unfair trade barriers that are detrimental to U.S. workers and producers, especially considering the grim situation facing the U.S. automotive industry. in this way.
EU Trade Commissioner Catherine Ashton said that China should end its discriminatory practices and ensure that Chinese and foreign auto companies compete on an equal footing.
In fact, industry insiders told reporters beforehand that according to Chinese regulations, many foreign automakers had to transfer parts production and purchases to China because of cost pressures. Therefore, the decrease in procurement in Europe and the United States, indirectly led to the related The reduction of jobs is also the main reason for this lawsuit.
At present, the European and American economies are in crisis, and the US auto industry needs the government to “saveâ€. The development of local parts suppliers is more difficult, and increasing exports has become an opportunity to reverse the decline.
The “Financial Times†chief economist Martin Wolfe (blog) told reporters the day before yesterday when he attended the forum in Beijing. Due to the reduction of consumption in the country, European countries and the United States are currently pinning their hopes on using exports to stimulate the economy and intensive measures. And policies will be introduced.
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