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LEAD: U.S., EU file complaint with WTO over China auto parts row+
[March 30, 2006]

LEAD: U.S., EU file complaint with WTO over China auto parts row+


(Japan Economic Newswire Via Thomson Dialog NewsEdge)WASHINGTON, March 30_(Kyodo) _ (EDS: UPDATING)

The United States and European Union on Thursday filed a joint complaint with the World Trade Organization saying that China has violated WTO rules by its "unfair" treatment of U.S. and European auto parts.

Under Chinese regulations, auto parts are typically charged with the high tariff equal to that imposed on complete automobiles, which stands at about 28 percent, they said.

Washington and Brussels asked China to join WTO consultations on its auto parts tariff rules, which they say breaks WTO rules.

The United States has been increasing pressure on China, its biggest trade deficit country, to improve the situation.

The United States aims to pressure China into taking specific actions before Chinese President Hu Jintao visits the country next month.

The complaint also appears to indicate support for U.S. auto parts manufacturers, which are under pressure by their Japanese competitors.

"As a mature trading partner, China should be held accountable for its actions and be required to live up to its responsibilities," U.S. Trade Representative Rob Portman said.

Upon receiving the complaint, the United States, the EU and China will begin talks at the WTO, but will move on to the WTO's dispute settlement process if they fail to resolve the issue in the initial stage.

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