US lodges WTO complaint over China auto subsidies

WASHINGTON: The United States has filed a trade complaint at the World Trade Organisation over China's subsidies for automobiles and auto parts, the US Trade Representative said on Monday (17 September 2012).

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."

Source: AFP