WTO on China's Treatment of Imported Auto Parts
Today the Office of the United States Trade Representative announced that the World Trade Organization (WTO) has issued a panel report against China's discriminatory tax treatment of imported auto parts. This report is in response to a challenge filed by the United States and joined by the European Union and Canada in March 2006. Sen. Chuck Grassley, ranking member of the Senate Finance Committee, offered the following statement in response to today's announcement.
"This is an important win for the United States. When another government doesn't abide by its commitments, we need to stand up for our rights. The Bush Administration has shown that it will work to resolve differences if a settlement can be based on acceptable terms. A number of important disputes with the Chinese government have been resolved that way. At the same time, our government is right to litigate a case to its end when that's necessary. Today's victory should help U.S. auto parts manufacturers compete on a level playing field in the Chinese market. That's what China committed to in joining the World Trade Organization, and the Chinese government needs to honor those commitments fully."