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China
criticizes WTO auto parts case BEIJING- China has expressed regret over a request by the European Union, the United States and Canada for a World Trade Organization (WTO) panel to hear their complaint about China's tariff treatment of foreign auto parts. The three said on Friday the time for consultation had run out in a dispute with Beijing over rules that assign a higher full-vehicle tariff to imported auto parts if they account for 60 percent or more of the value of a final vehicle. Chong Quan, spokesman for the Ministry of Commerce, said the regulations were meant to keep "criminal elements" from exploiting the difference between tariff rates for entire automobiles and auto parts and to protect consumers' interests, and were in line with WTO rules. "In its discussions with the EU, United States and Canada, China has already clarified this point and showed great sincerity," Chong said in a statement on the ministry's Web site (www.mofcom.gov.cn). "We regret the request ... for a panel to be set up." The three took the rare step earlier this year of joining forces to call on Beijing to talk about changing the rule, which EU, U.S. and Canadian officials say helps Chinese car parts makers and breaks WTO rules. Trade officials of the three trading partners said they had tried to negotiate with China on a solution but found its stance left them with no choice but to proceed with a WTO case -- the first litigation against China at the trade body, which it joined in 2001. Separately, Commerce Minister Bo Xilai reiterated his assertion that rich countries needed to take the lead in reviving the deadlocked Doha Round of trade liberalization talks, which were suspended in July after major trading partners failed to bridge differences over agriculture. "We hope the United States, EU and other developed members will show greater sincerity and come forward with substantive concessions on agricultural issues to break the deadlock," Bo told Swedish Industry and Trade Minister Thomas Ostros in Stockholm on Friday, according to a statement on the Web site. Bo called China's role in the negotiations constructive and said it would continue to strengthen cooperation and dialogue with all sides. The
United States, which has swapped blame with the EU for not offering deep
enough cuts, has called on China to offer its own concessions to help
restart the talks.
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