The complaint was upheld by the WTO as the judges condemned the tariff on automobile parts by the Chinese government. In this case, the plaintiffs were the United States, Canada, and the European Union. This information comes according to sources that say they were close to the case being handled by WTO judges.
This was the first time that there has been a complaint against China that went all the way to disputed settlements since it became a member of the WTO. China was given membership back in 2001 and has been a member for at least 6 to 7 years. China’s government insists that the tariffs are in place to prevent tax evasion on the part of companies that import whole cars that could be chopped up and harvested for spare parts to avoid the higher charges.
The three have given the argument that this act violates the accession agreement by China as it pledged opening up its markets.
On the verdict, neither side had commented. But, it is revealed that China more and more is becoming the main focus of complaints filed by the WTO.
Complaints include protecting intellectual property rights, restricting foreign financial news, and falling short of commitments.
“There is no doubt that there are areas where our side believes they could be doing a better job of living up to their commitments and where there’s been some retrogression,” according to US Secretary of the Treasury Henry Paulson.
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