W.T.O. Rules Against China's Auto Parts Tariffs

The United States has won a preliminary ruling in a World Trade Organization case over Chinese tax policies that restrict imports of auto parts, a United States trade official said.

The final report in the case is expected to be made public this year. The United States and the European Union filed the case in March 2006 and were later joined by Canada. They complained that China's tax treatment of auto imports discouraged Chinese automobile manufacturers from using them.

China's commitments to the trade organization require it to set a lower tariff on imported auto parts than it does on finished vehicles, but it had been charging the same tariffs, the United States trade representative's office said at the time it filed the case. Once a final report is issued, China can appeal the decision.