China appeals WTO auto parts ruling

Beijing has launched an appeal against a WTO ruling that the tariffs China imposes on imports of auto parts are a violation of global commerce rules, Bloomberg reported. Registering its appeal on Monday, China said it "cannot fully agree with the legal explanations and verdict of the expert panel." China charges a 25% tariff on imported vehicles and a 10% tariff on imported auto parts. However, if a vehicle manufactured in China comprises more than 60% imported parts it is taxed at the same rate as an imported finished vehicle. The US, EU and Canada filed a complaint with the WTO, arguing that the differences in duty represented an unfair discrimination against foreign auto parts. The complaint was upheld by a WTO panel on July 18 – the first time the global trade body has ruled against China. If the appeal fails, China could face retaliatory tariffs on its exports.