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China studying WTO interim ruling on auto parts dispute

2008-02-15 05:21

From:Xinhua Article type:Reproduced

GENEVA -- The Chinese government said on Thursday that it is studying an interim report issued by the World Trade Organization (WTO) on EU, U.S. and Canadian complaints about China's tax measures on auto parts imports.

China is carefully studying the report and is preparing to submit its opinions to the WTO panel, according to a government statement issued by the Chinese mission to the world trade body.

China respects the dispute settlement procedures of the WTO and will not make comments on the case until the final ruling is made, the statement said.

The WTO panel in charge of the case circulated its interim report to the four parties concerned on Wednesday.

The report largely upholds EU, U.S. and Canadian complaints that the Chinese tax measure on imported auto parts violates WTO rules.

China considers auto parts as a whole vehicle if they account for 60 percent or more of the value of a final vehicle, and it charges a higher tariff on them.

China says the measure is meant to keep "lawbreakers" from exploiting the difference between tariff rates for importing entire automobiles and auto parts, and to protect consumers' interests.

The final WTO report on the dispute is expected next month.

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