China in Hot Water Over Taxation of Auto Parts

Washington DC March 31, 2006; The AIADA newsletter reported that the Bush Administration and European Union filed a trade case yesterday against the World Trade Organization (WTO) in a dispute involving auto parts from the U.S. and other nations, reports The Detroit News.

The complaint alleges that China is imposing high taxes on imported auto parts, violating pledges it made when it joined the WTO in 2001. "As a mature trading partner, China should be held accountable for its actions and be required to live up to its responsibilities," said U.S. Trade Representative Rob Portman. According to the paper, "filing a complaint with the WTO triggers a 60-day consultation period in which both sides try to work out their differences."

If negotiations do not succeed, then the U.S. and EU may pursue a trade case that might result in penalty tariffs levied against Chinese products.