US lodges WTO complaint over China auto subsidies

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    WASHINGTON: The United States has filed a trade complaint at the World Trade Organization over China’s subsidies for automobiles and auto parts, the US Trade Representative said Monday.

     

    At the initial stage, the US has requested dispute settlement consultations  as it seeks to protect US auto and parts makers from cheaper imports from China.
     
    The complaint is focused on China’s “export base” program, in which Beijing  targets support for automotive manufacturers in designated regions to develop  them as export centers.
     
    The Chinese government pumped more than $1 billion in subsidies to  automotive exporters under the program between 2009 and 2011, the US charged.
     
    “China’s program appears to provide export subsidies that are prohibited  under WTO rules because they severely distort trade,” the USTR said.
     
    “The subsidies provide an unfair advantage to auto and auto parts  manufacturers located in China, which are in competition with producers located  in the United States and other countries.” -- AFP
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