EU Trade Commissioner Peter Mandelson said: "Consultations will allow us to clarify the legal issues and find a mutually satisfactory solution. It remains my strong preference and intention to seek an amicable solution to this issue".
A statement from the office of the US Trade Representative (USTR) said
The EU first raised the issue of its tariffs on car parts in 2004. The EU requested action to address the problem at the EU-China Joint Trade Committee in October 2005. The European Union had then urged China to eliminate trade restrictions harming companies from Arcelor SA to Volkswagen AG and threatened to bring its first World Trade Organization complaint against the communist nation.
The EU believes that Chinese tariff laws for spare auto parts are WTO-incompatible. Chinese rules apply the tariffs for "whole vehicles" to the import of spare parts making up 60% or more of the value of a final vehicle. The EU believes that this may contravene
This can be problematic for EU producers in
What happens now?
The request for consultations has been filed with the WTO in
What does this mean?
The chances are that the EU & US will win this case, thus meaning that American & European automanufacturers will be able to create a super low price car part bin, by shopping from the cheapest possible sources around world. Then, they will go to the world’s lowest paid labor hand country -