China announced on Saturday it has accepted a request from both
the European Union and the United States for talks with China on
auto parts tariffs under the World Trade Organization trade dispute
settlement mechanism.
China's Ministry of Commerce said the timing and
location of the talks have yet to be decided.
On March 30 in Brussels, WTO commissioners of the EU and the
United States sent their requests to China's WTO commissioner Sun
Zhenyu, seeking WTO talks with China on car parts tariffs.
The EU complained that some of China's rules on car import
tariffs are not in accordance with WTO rules putting European car
manufacturers at a disadvantage compared to local producers.
In responses to the request, Cong Quan, the spokesman of the
Chinese ministry, expressed regret on the European Union's plan to
file a WTO complaint against China's rules over imports of auto
parts.
He said China is seriously considering the request for dispute
settlement consultations from the EU and US on auto parts
makers.
China said that China's tax is aimed at curbing tax evasion
by some foreign auto manufactures, saying that some of them
disassemble their cars before importing and then reassemble them in
China thereby avoiding customs payments on importing whole
cars.
Under WTO rules, if a resolution is not found in 60 days, then
the EU and China can ask a WTO panel to rule on the dispute.
(Xinhua News Agency April 9, 2006)