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Image header Agence Europe
Europe Daily Bulletin No. 9741
Contents Publication in full By article 17 / 37
GENERAL NEWS / (eu) eu/trade

China appeals against WTO ruling on vehicle spare parts

Brussels, 16/09/2008 (Agence Europe) - It came as no surprise that China appealed, on Monday 15 September, against the ruling of the WTO Dispute Settlement Body (DSB) on the subject of car parts. China had 60 days in which to appeal after being found guilty, on 18 July this year, of measures considered “incompatible” with international trade law, further to a complaint filed by the EU, Canada and the United States in March and April 2006 (DS 339, 340 and 342). This was China's first condemnation since it became a member of the WTO in 2001 (EUROPE 9709). The dossier concerned the taxation of braking systems, gearboxes and other imported parts. Normally subject to 10% customs duty, they are imposed at 25% import duty by China, i.e. at the same rate as complete vehicles of foreign manufacture, when they make up at least 60% of an assembled model. The complainants consider this practice is unfair as it increases the price of foreign cars and promotes national vehicle makers and parts manufacturers. The DSB now has 90 days in which to rule on the points of the condemnation challenged by China. Beijing has a “perfect right” to appeal, commented the spokesman for European Trade Commissioner Peter Mandelson, Peter Power, who gave his assurance that he EU was “convinced of the force of its arguments”. (E.H./transl.jl)

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