China to comply with WTO auto parts decision

ERJ staff report (TB)

BETHESDA, Md. (Feb. 19, 2009) - China has indicated in a statement released to the World Trade Organization (WTO) that it intends to comply with a WTO directive regarding auto parts tariffs.

The directive, according to the Automotive Aftermarket Industry Association (AAIA), responded to a dispute lodged by the U.S. and the European Union (EU) condemning measures implemented by China during 2004-2005 that resulted in higher tariffs on imported auto parts if the imported parts constituted a fixed percentage of the final vehicle content.

In its response to the WTO's Dispute Settlement Body on Feb. 11, Chinese officials said the country had begun evaluating options for achieving compliance, but requested more time due to anticipated difficulty in implementing the WTO's directive.

The AAIA said that, in determining the implementation deadline, China indicated it is willing to consult with the U.S. and EU, both of which have expressed their desire to have the measures implemented as quickly as possible.

Should the parties be unable to reach an agreement, the AAIA said the United Nations could request that a WTO arbitrator set a compliance date for China.

From Tire Business (A Crain publication)