Mexico challenges China subsidies at WTO
The Mexican government joined the United States this week by requesting World Trade Organization dispute settlement consultations over China's industrial subsidies, which are considered inconsistent with China's obligations as a member of the WTO.
The United States filed the initial WTO consultation request on Feb. 2. 'We are pleased that Mexico has decided to join the United States in challenging China's use of what we believe are prohibited export and import-substitution subsidies,' said U.S. Trade Representative Susan Schwab, in a statement.
Japan, Australia and the European Union have also joined the consultations as third parties.
According to the United States and Mexico, China applies a series of measures that, by allowing for refunds, reductions or exemptions from taxes and other payments owed to the government, appear designed to subsidize the purchase of domestic over imported equipment and certain manufacturing inputs.
Consultations are the first step in a WTO dispute. Under WTO rules, parties that do not resolve a matter through consultations within 60 days may request the establishment of a WTO dispute settlement panel.