Strasbourg, 16/12/2008 (Agence Europe) - On Monday 15 December, the WTO rejected an appeal by China (the first since it joined the World Trade Organization in 2001) against a ruling on its import tariffs of car parts. Canada, the US and EU regarded these as discriminatory and had therefore lodged a complaint at the end of 2006 (DS 339, 340 and 342).
In its final report published on Monday, the WTO's appeals panel found in favour of the plaintiffs and called on China to comply with international trade rules. This decision was immediately welcomed by Catherine Ashton, the European commissioner for trade: “China should now put an end to the discrimination and ensure a level playing field in its automotive sector”. The WTO's dispute settlement body ruled against the import regime set up by Beijing in 2004 and stated that it was “incompatible” with rules on world trade because it “subjects imported auto parts to a treatment that is less favourable than that given to similar Chinese auto parts”. Beijing decided to appeal on 15 September. The system set up by China stipulates that imported auto parts accounting for more than 60% of the value of a car assembled in China be taxed at the same level as finished cars. Duties can in principle go up to 25% for finished vehicles as opposed to 10% for auto parts. According to the WTO procedures, the appeals ruling will be adopted over a 30 day period after which China will have to apply its conclusions. (E.H./transl.rh)