Do More With Reuters
Partner Services

WTO sets up panel to investigate China tax regime

Fri Aug 31, 2007 10:52pm IST
 
Email | Print | | Single Page
[-] Text [+]

GENEVA (Reuters) - The World Trade Organisation (WTO) on Friday launched a panel to investigate China's tax regime that the United States and Mexico allege give Chinese businesses an unfair international trading advantage.

China last month exercised its right to turn down the first request for the panel, filed last month, to give more time for consultations on the issue. On the second request to the WTO's Dispute Settlement Body, it was set up automatically.

The United States and Mexico have argued that China's tax refunds, reductions and exemptions discriminate against imported products, or subsidise Chinese exports.

China argues that its tax laws are consistent with WTO rules and says the two complainants misunderstand them.

Although China eliminated one subsidy programme challenged by Mexico and the United States, it also passed a revised income tax law that the two say appears to give new unfair subsidies.

Chinese trade is a highly sensitive issue in the United States, where many many lawmakers blame Beijing's state subsidies and exchange rate policies for the huge U.S. trade deficit with the fast-growing Asian exporter.

In a separate case on Friday, China blocked an initial U.S. request for a WTO panel to investigate China's intellectual property rights protection and enforcement.

Washington says China's failure to crack down on counterfeit goods has helped foster a black market for pirated products that costs U.S. companies billions of dollars a year.

U.S. officials want to see more aggressive prosecution in China of those who pirate copyrighted or trademarked materials, and more stringent rules governing what happens to pirated material once it is seized.

Dubai Debt Fears

Villas are seen on the The Palm, Jumeirah, with Atlantis, The Palm, under construction on the breakwater (crescent), May 3, 2008.  REUTERS/Jumana El Heloueh

Banks outside the Gulf played down their exposure to Dubai debt, after fears the emirate could default and even derail world economic recovery prompted a sell-off in global markets.  Full Article | Slideshow 

India Investment Summit 2009
India Investment Summit 2009

Top executives and bankers discuss their own plans and the broader opportunities and challenges for India.  Full Coverage 

People stroll outside the Taj Mahal hotel ahead of the first anniversary of the militant attacks in Mumbai, November 24, 2009.  REUTERS/Punit Paranjpe
Investors worry about another attack

The risk of militants striking again worries investors who fear that a second attack similar to last year's Mumbai raids could shake the economy.  Full Article | Full Coverage 

Market Update

  • IndiaIndia
  • USUS
  • UKUK
  • Asia
  • Most Actives

road to Copenhagen

BLOGS

Photo
Calculated Move

Reliance aims big with $12 bln bid for LyondellBasell.  Blog 

SHOWCASE

Capital Raising
Capital Raising

Analysis - China banks' rush for billions could trip markets.  Full Article 

 
Photo
Bonus Payout

"Bonus" has become a dirty word on Wall Street.  Full Article 

 
Bubble trouble?
Bubble trouble?

With the BSE Sensex at around 17,000 points, are the Indian equity markets looking at a possible bubble?   Commentary 

 
Funding Blues
Funding Blues

A popular tactic used by Indian brokerages to raise money for rich clients is likely to be banned.  Full Article 

 
Recovery Path
Recovery Path

Indian techie logging out of downturn gloom.  Full Article 

 
Central Banks Cautious
Central Banks Cautious

Reuters tracks the policies of the world's top central banks as the debate over global economic recovery rages on.   Full Coverage 

 
Risky Proposal
Risky Proposal

Rupert Murdoch courts trouble if he blocks Google on news.  Full Article