WTO investigates China's export subsidies

The WTO started investigating claims that China is unfairly subsidizing exports on August 31, the Financial Times reported. The US and Mexico have alleged that China is competing unfairly using tax refunds, reductions and exemptions across a range of industries. The US filed the complaint in February, and Mexico joined it soon after. The US Trade Representative Susan Schwab said at the time that China subsidized steel, wood products, information technology and other industries at the expense of the US. China has removed one subsidy program the complainers said was unfair, but it also passed an amended income tax law that the US says provides new subsidies. An independent dispute panel will rule on the allegations. An initial ruling will take at least six months to issue, and a final judgment will probably come in late 2008. Another WTO panel was set up last year after the US, the EU and Canada requested investigations into China's import tariffs on foreign car parts.