The World Trade Organisation (WTO) on Thursday set up a panel on Chinese import duties that the European Union, the United States and Canada say unfairly limit access to China's $19 billion market for auto parts, REPORTED REUTERS. Creation of the three-member panel, which will be the first to conduct a formal probe into Beijing policies since China joined the organisation in 2001, was agreed by the WTO's Dispute Settlement Body (DSB). The panel, once its members are appointed, will have six months to report its findings, probably around the middle of next year. But either side in the case can appeal, which means a final ruling could come as late as the start of 2008. The three Western trading powers argue that China is violating terms of its WTO entry agreement, as well as global trade rules, by imposing a 25 percent tariff on auto parts, giving home manufacturers an advantage over foreign firms. They say efforts over the past few months to negotiate a solution to the row have failed, leaving them no alternative but to launch a joint case against China in the trade body. China says it is not in breach of WTO accords and argues that since joining the body it has progressively reduced duties on automobiles and parts. Some measures the three powers have complained of, it says, are aimed at preventing tariff evasion. The three initially asked for a panel to adjudicate on their complaint last month but action was blocked by China. The second request to the DSB on Thursday automatically triggered creation of the panel, to hear both sides. Until now, China has only been involved in full WTO disputes as a complainant, joining in 2002 a case launched by several trading powers against the United States over tariffs Washington imposed on steel parts. In 2004, the United States started a WTO case against Beijing over duties on semi-conductors but dropped it before the panel stage when the two countries negotiated a settlement.
