China Loses its First WTO Case
Filed in archive Law by Greg Cruey on February 17, 2008
According the Agence France Press (AFT), the case is the first time China has been the subject of a complaint that went all the way through to the WTO's Dispute Settlement Body since it joined the WTO in 2001.
The case involves tariffs on the importation of car parts
into China. In order to nurture its own parts industry, China places a tariff on cars when more than 60% of the parts on them are imported. That tariff means those made-in-China cars are taxed at the same rate as if they'd been imported whole. 
The WTO ruling it not yet public. Confidential documents have been leaked by diplomats in Geneva on condition of anonymity, according to the AFT.
The ruling could serve to make the U.S. more aggressive at the WTO in an effort to solve disputes with China. Among the issue that could be next, intellectual property rights disputes like copyright and pirating.
China's blocking of many U.S. Internet web sites has also been discussed recently as a free trade issue. The WTO could eventually become one path for fighting censorship of the Web in China.
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