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USTR office issues warning to China on illegal subsidies

27
Oct '08
In a veiled warning to China, US has urged the country to remove certain subsidies it extends to its textile and garment industry or face the possibility of proceedings against it at the World Trade Organization (WTO), according to a letter sent by a high ranking US Trade Representative Susan Schwab to Ministry of Commerce, China

In the letter she has expressed her concern about potential illegal subsidies not pertaining to the frame work of WTO guidelines and has indicated that the US Trade Representative's office has started preparing a potential WTO dispute settlement request to challenge such subsidies if the Chinese government does not eliminate them.

This warning had been released to the Chinese ministry earlier and was recounted in a reply by Susan Schwab to a concern raised by a senator about illegal Chinese subsidies. The US Trade Representative's office, earlier, has already scored a victory in a case presented at the WTO related to illegal subsidies in which the Chinese agreed to eliminate those subsidies.

Fibre2fashion News Desk - India


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