Aftermarket Insider Issue 78 - (Page 15)

inTernaTional Trade GoVERNMENT AFFAiRS WTO Case Challenging Chinese Subsidies: What You Need to Know will then establish a panel to review the case. The panel generally takes one year to issue its final report. The parties then have an opportunity to appeal the panel’s findings to the WTO appellate body. An appeal generally takes an additional three months. Thus, this case will likely not be decided until late in 2013, and the appeals process could extend the case well into 2014. The Remedy: Unlike anti-dumping and anti-subsidy cases, which can result in steep tariffs on imports that stay in place for years, WTO cases often end with the losing country simply abandoning the offending policy, in this case the challenged subsidy programs. The impact: The impact on prices for imports of Chinese auto prices will development, subsidies to pay interest depend on various market factors in on loans and preferential tax treatment. place if and when the subsidy programs Under WTO rules, export subsidies are end. Unlike domestic anti-dumping and prohibited outright. anti-subsidy cases, which can work to restrict imports into the U.S., a WTO Parts at issue: Definitive information case impacts the global marketplace. on parts that may be affected is not This case is aimed at all Chinese autoavailable at this time. The U.S. filing motive subsidies regardless of whether lists more than 80 specific subsidy the exports are going to the United programs that are alleged to be widely States. Thus, the withdrawal of subsioffered to Chinese auto parts manufac- dies may help U.S. exporters be more turers. It’s likely that most Chinese auto competitive in other markets. parts manufacturers benefit from the subsidy programs in question. AAIA will continue to monitor this case and report on any relevant develThe Process: Under WTO dispute opments. Contact Andres Castrillon at settlement procedures, the United andres.castrillon@aftermarket.org for States and China now have 60 days for additional information on this issue. consultation. If consultations do not produce a favorable result, the WTO What: The U.S. government announced on Sept. 18 that it has challenged Chinese policies it says improperly subsidize exports of auto parts in violation of World Trade Organization (WTO) free trade rules. Chinese Policies at issue: China is allegedly providing export subsidies that are prohibited by the WTO to its auto and auto parts industries. The subsidies being challenged are allegedly provided to autoparts manufacturers in China that meet certain export performance requirements and that are located in government-designated regions known as “export bases.” The “export base” program provides export subsidies such as cash grants for exporting, grants for research and AFTERMARKET INSIDER | VOLUME 78 | 15 http://techforums.aftermarket.org/Government/FederalIssues.aspx

Table of Contents for the Digital Edition of Aftermarket Insider Issue 78

Aftermarket Insider Issue 78
Contents
President’s Message
Association News
AAPEX 2012
Company Profile
Member Profile
Toolbox
Government Affairs
Technology Update
Executive Perspective
Association News
Market Intelligence

Aftermarket Insider Issue 78