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China launches trade dispute with US

Sunday, 21 September 2008


GENEVA, Sept 20 (Reuters): China has launched a dispute against the United States at the World Trade Organisation (WTO) over US measures against imports of certain steel pipes, tires and woven sacks, China's WTO mission said Friday.
"Considering that bilateral consultations between China and the US failed to solve concerns of China, China requested consultations with the US under the WTO dispute settlement mechanism regarding those measures," it said in a statement.
It is the second trade case launched by China. In September last year China challenged US measures against imports of coated sheet paper.
A Chinese official said that following consultations under the WTO dispute procedure with the United States, Washington had determined that there was in fact no injury to the US paper industry in that case and decided not to apply the measures.
That resolved the case in China's favour without it going to a WTO panel, although the WTO has not been formally notified that the case was settled.
China also joined a case in 2002, a few months after joining the WTO, launched by the European Union against US measures on steel imports, which the United States subsequently lost.
As the world's second biggest exporter, China is more usually the target of trade disputes, and has been challenged by the United States on a range of issues, from import tariffs on car parts to protection of intellectual property.
But in recent months -- ironically in the face of calls by Washington for China to take a greater leadership role -- it has become more assertive at the WTO, which it joined in late 2001.
In July's abortive ministerial talks seeking a breakthrough in the WTO's long-running Doha round, China clashed with the United States over U.S. calls to eliminate tariffs in some industrial sectors and proposals to shield poor countries from the full impact of tariff cuts in agriculture.