China, US to talk about WTO complaint on government subsidies
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March 7, 2007
China and the United States will meet at the end of March to talk about the complaint the US has filed with the World Trade Organization concerning what the US sees as illegal subsidies by the Chinese government to several industries, according to reports in the Chinese media. Among the industries the US believes China subsidizes in violation of WTO policies are paper, information technology, and steel.China claims that the US has not submitted any evidence in support of its complaint. The Asian nation says that many developed nations subsidize their own industries, through initiatives such as tax rebates on exports, at a much higher rate than it does.This is the third time that the US has taken China to the WTO since the Asian nation joined the WTO in 2001, and it is not likely to be the last. Some expect that the US will file charges soon over Chinese piracy of US-made goods. The current dispute is the most wide ranging of the complaints filed to date by the US against China.Mexico, Japan, the European Union, and Australia will join the discussions between China and the US as third parties. The two countries have 60 days from the time the complaint was filed to solve their dispute. If no solution is reached the US, as the complaining party, can appeal to a WTO dispute settlement panel.


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