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U.S. requested WTO consultations with China over alleged export-contingent subsidies

Xinhua, February 13, 2015 Adjust font size:

The United States requested consultations with China regarding certain measures that allegedly provide export-contingent subsidies to Chinese businesses in several industrial sectors, the World Trade Organization (WTO) said on Thursday.

According to the WTO, the U.S. complaint referred to measures that allegedly provide export-contingent subsidies to businesses in several industrial sectors in China, including textiles, agriculture, medical products, light industry, special chemical engineering, new materials, and hardware and building materials.

The U.S. claimed the programs were "inconsistent with China's obligations" under WTO's Agreement on Subsidies and Countervailing Measures.

The U.S. insisted that China designate a cluster of enterprises in a particular industry as a demonstration base and then provide export-contingent subsidies to those enterprises, the WTO said in a press release on its website.

China's Ministry of Commerce(MOC) said on Thursday that China has received the consultations request.

China has consistently adhered to WTO rules. The demonstration base was an important practice for China to transform its foreign trade and promote its sound and stable development, the MOC said in a statement on its website.

The request for consultations is the first step in a dispute under the dispute settlement system of the WTO.

Response to the request has to be given within ten days and the member requested must enter into consultations within a maximum of 30 days after the date of the receipt of the request. The maximum period of consultations is 60 days after the reception of the request.

If consultations fail to find solutions, the complainant may request the WTO'S Dispute Settlement Body establish a panel of experts to probe into the dispute. Endit