EU and US hit out at Chinese taffifs on car parts

Manufacturing News, Source : TheManufacturer.com
Published : 31 Mar 2006 14:15

The EU and the US became rare trade allies today, ganging up on China over tariffs on imported car parts.

The two western blocs, which have more often clashed over issues such as the support each allegedly provides to competing giants like Boeing and Airbus, have requested consultations with China at the World Trade Organisation, concerning China's decision last year to impose tariffs on car parts based on the overall value of imports in a complete vehicle.

China said it regretted the decision by the EU and US to file the joint complaint and said it was “earnestly studying the … request for consultations''.

US trade representative Rob Portman said the complaint had been filed because tariffs based on the overall value of imports in a complete vehicle favoured China’s domestic industry, forcing US companies to relocate to China “to get out from under these illegal taxes.''

For the EU, Trade Commissioner Peter Mandelson said it remained his “strong preference and intention to seek an amicable solution.''

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