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Auto-parts tariff to face complaint

(AP)
Updated: 2006-09-13 10:35

The U.S., Canada and the European Union are set to file a joint complaint with the World Trade Organization against China's import tariffs on auto parts, according to a newspaper report.

The complaint could be filed as soon as this week, The Wall Street Journal said on its Web site, citing people familiar with the matter. It would mark the first time the Western allies have teamed up to seek a formal investigation by the global trade body in a dispute with the Asian giant.

In negotiations with the governments, China has refused to change its protectionist policy, which charges an average 25 percent levy on imported auto parts. That leaves formal complaint as a last recourse at the WTO for Washington, Brussels and Ottawa.

The U.S. exported about $540 million of auto parts to China last year, a market estimated at $19 billion, the newspaper said. The EU says its auto-parts exports to China are valued at about 3 billion euros, or roughly $4 billion.