http://www.nytimes.com/2008/07/19/business/worldbusiness/19wto.html?ref=businessBy BLOOMBERG NEWS
Published: July 19, 2008
China violates global trade rules by requiring automakers operating there to buy components from local suppliers or face penalties, the World Trade Organization ruled on Friday.
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The decision, issued in Geneva on a complaint brought by the European Union, the United States and Canada, is the first time China has lost a case since it joined the global trade arbiter in 2001.
China compels Ford Motor, Volkswagen, Renault and other automakers operating there to buy a quota of their components from local suppliers or pay more than double the standard import duty on their parts. That violates trade rules, the complaint said.
“The panel report leaves no doubt that China’s discriminatory treatment of U.S. auto parts has no place in the W.T.O. system,” the United States trade representative, Susan C. Schwab, said in a statement.
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