China loses WTO car parts case against US

Tag : Parts For Car
The World Trade Organisation on Friday said it had ruled againstChina in a complaint brought by the United States over Chineseimport tariffs on car parts.

The WTO's dispute settlement panel urged China to bring what ittermed "inconsistent measures ... into conformity with itsobligations."

Beijing has a minimum local content requirement of 60 percent forhome produced cars. If this level is exceeded, it then levies thesame tariff on the vehicle as it would if it were importedcompletely built.

China has said the rules aim to prevent tax evasion by companiesthat import whole cars as spare parts to avoid higher tariff rates.

But the United States, as well as co-complainants Canada and theEuropean Union, argued that the measure violated China's WTOaccession agreement, which pledged a progressive opening up ofChinese markets.

In February, sources close to the case said that China had lost,but an official judgement was issued only on Friday.