China’s 1st Time WTO Loss
China lost a trade dispute with the World Trade Organization for the first time since it joined the group in 2001.
A dispute settlement panel ruled in favor of the United Stats and the European Union against China on auto parts tariffs.
The panel endorsed the U.S., Canada, and EU claims "that a Chinese system to raise tariffs on auto components imported in excess of certain thresholds discriminates against foreign automakers assembling cars in China and runs counter to WTO rules."
The interim report is expected to become a final one next month.
Auto parts procurement by the U.S. EU and Japan will be facilitated.
China will definitely need to be on the lookout for trade complaints from its other trading partners.
The WTO global trade watchdog says, "Woof, woof!"
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