U.S. WTO liaison: China not playing fair

U.S. WTO liaison: China not playing fair    With the presidents of the United States and China set to meet in Washington, D.C. this week, Peter Allgeier, the U.S. Trade Representative to the World Trade Organization said in a speech in Geneva Wednesday that while China has met most of its obligations in being a WTO member, the Asian giant still has much to prove.
   'When it acceded to the WTO in 2001, China committed to extensive, far-reaching and often complex commitments to change its trade regime, at all levels of government,' Allgeier said. 'By now, most of the key commitments that China made in its accession agreement should have been phased in. In our view, China has made progress in implementing specific commitments and in adhering to the ongoing obligations of a WTO member.
   'At the same time, however, it is apparent that China has not yet fully embraced the key WTO principles of non-discrimination and national treatment, nor has China fully institutionalized market mechanisms and made its trade regime predictable and transparent. Despite many positive reforms, China continues to use an array of industrial policy tools to promote or protect favored industries, and these tools at times appear to collide with China’s ongoing WTO obligations.'
   He provided specific examples of China's interference into the steel and automotive engine markets.
   'China’s use of industrial policy tools — including government subsidization — to promote and protect these and other industries appears to be on the rise, instead of in decline, and it is a cause of great concern to the United States,' Allgeier said. 'The United States does recognize the significant challenges that China faces, not the least of which is the need to create over 100 million new jobs over the next decade. Nevertheless, the Chinese government’s increasing efforts to dictate outcomes in the market is beginning to overshadow the many positive reforms undertaken by China in connection with its accession to the WTO.'
   Allgeier also said a lack of intellectual property rights plagues U.S. companies attempting to conduct business in China.
   'Another area that continues to generate significant problems for the United States is China’s inadequate enforcement of laws, particularly in the area of intellectual property rights,' he said. 'Enforcement remains weak and infringement of intellectual property rights remains widespread in China. A number of factors contribute to this situation, including lack of coordination among the main enforcement agencies, local protectionism and corruption, inadequate deterrence provided by China’s system of administrative, civil and criminal penalties, and a lack of sufficient training of enforcement personnel.'