The World Trade Organization will establish an arbitration panel to rule on a dispute between China and several western countries over Chinese import tariffs on car parts, AFP reported, citing a WTO official. It will be the first such arbitration panel involving China since it joined the global free trade system in 2001. China blocked an attempt by the European Union, the United States and Canada to seek a WTO ruling on Beijing's tariffs on foreign parts for local vehicle assembly last month, but the countries renewed their request Thursday, automatically triggering the WTO's intervention. China has a minimum local content requirement for cars produced on its soil and charges tariffs if the value of the foreign parts exceeds the threshold. The plaintiffs argued that the tariff rule violates China's accession agreement to the WTO.
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