China agrees to end ôFamous Brandsö subsidies
The United States and China entered an agreement Friday confirming China's termination of many dozens of subsidies on exports, based on the country's so-called 'Famous Brands' initiatives.
These subsidies were the subject of a World Trade Organization dispute initiated by the United States, because export subsidies are illegal under WTO rules.
'I am very pleased that today we have signed an agreement with China confirming full elimination of the numerous subsidies we identified as prohibited under WTO rules,' said U.S. Trade Representative Ron Kirk, in a statement.
At the central government level, China established the 'Famous Export Brand,' 'China World Top Brand,' and 'China Name Brand Products' initiatives. These measures set out criteria for an enterprise to receive a designation by China's Ministry of Commerce as a 'Famous Export Brand' or a designation by the Administration of Quality Supervision, Inspection and Quarantine as a 'China World Top Brand' or 'China Name Brand Product.' Enterprises with these designations were entitled to various government preferences, including alleged financial support tied to exports.
China agrees to end ?Famous Brands? subsidies