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WTO
·
On February
13, 2008
China had
its first
defeat at
WTO, in a
case centred
on
restrictions
on the
importation
of
foreign-made
car parts;
in complaint
from EU,
Canada and
US,
preliminary
WTO finding
put “current
Chinese
practice is
protectionist”.
·
Under
existing
Chinese
rules,
its
carmakers
must use 60%
Chinese-made
parts - or
pay higher
taxes.
·
The ruling
says China
must end
this policy
to meet its
WTO
obligations.
·
The WTO
report says
that
foreign-made
car parts
are
currently in
a "less
favourable"
position
than their
Chinese-made
alternatives.
·
The WTO is
now due to
make its
final report
later this
year, when
the Chinese
government
will have
the
opportunity
to appeal.
·
China first
joined the
organisation
in 2001,
pledging to
open up its
domestic
market to
overseas
firms and
abide by WTO
rules for
international
trade.
·
Western
governments
have
repeatedly
complained
that China
is not
moving
quickly
enough.
·
The US
announced
last year
that it was
seeking a
WTO inquiry
over whether
Chinese
limits on
imports of
copyrighted
US goods
broke trade
rules.
·
America has
also
complained
against
continuing
high levels
of music and
film piracy
in China.
WTO
·
The World
Trade
Organization
(WTO) is an
international
body whose
purpose is
to promote
free trade
by
persuading
countries to
abolish
import
tariffs and
other
barriers. As
such, it has
become
closely
associated
with
globalisation.
·
WTO
decisions
are absolute
and every
member must
abide by its
rulings.
·
So, when the
US and the
European
Union are in
dispute over
bananas or
beef, it is
the WTO
which acts
as judge and
jury. WTO
members are
empowered by
the
organisation
to enforce
its
decisions by
imposing
trade
sanctions
against
countries
that have
breached the
rules.
·
Based in
Geneva, the
WTO was set
up in 1995,
replacing
another
international
organisation
known as the
General
Agreement on
Tariffs and
Trade (Gatt).
Gatt was
formed in
1948 when 23
countries
signed an
agreement to
reduce
customs
tariffs.
·
China
formally
joined the
body in
December
2001 after a
15-year
battle.
Russia wants
admission,
but must
first
convince the
EU and US
that it has
reformed
business
practices.
o
Founded:
1995
o
Members: 151
states
(December
2007)
o
Budget: 158
million US
dollars
o
Staff: About
600
o
Director-general:
Pascal Lamy
§
Pascal Lamy,
a Frenchman
and a former
EU trade
commissioner,
became WTO
head in
September
2005. His
campaign for
the
leadership
focused on
the
developing
world.
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