Auto Service World
News   April 17, 2006   by Auto Service World

Canada joins EU and US in China dispute

Canada has filed a preliminary motion requesting consultations with the World Trade Organization, over trade tariffs levied by China, on foreign auto parts.
The diplomatic move puts Canada in line behind the US, the EU and Japan, who filed similar requests over the past two weeks.
In a statement, trade minister David Emerson said, “We are seeking clarification from China on its current auto part import regime, which we believe contravenes a number of the country’s international trade obligations.”
Canada’s grievance stems form a series of rules in Chinese trade law, which hits some Canadian auto parts with a 28 per cent tax, (the rate normally reserved for completed cars) as opposed to a rate of 10 to 14 per cent, which is normal for parts.
Canada recorded a trade deficit of some 22 billion dollars with China last year.

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