In a move that has earned the disapproval of Chinese Government, America and Mexico asked WTO at a recent meeting to investigate the country's allowance policy.
Registering strong protest against America and Mexico's move, a Chinese delegation present at the WTO meet insisted that the country had taken active measures in recent years to reform the tax system and that the measures mentioned by America and Mexico were in full compliance with WTO rules.
They added that Chinese allowance measures mentioned by the two countries either did not exist or had been stopped long time back. This just proved America and Mexico had misunderstood China.
Trouble for China began in February this year when America, and later Mexico, complained to WTO about China's allowance measures. The dispute mainly involved some Chinese preferential policies like tax refund. Though China has been discussing the issue with the US and Mexico since March, they still asked WTO to set up a team of experts to investigate the matter.
If America and Mexico repeat their demand for a probe at the next WTO meeting to be held in September, WTO will automatically set up an expert team to prod the dispute.
Fibre2fashion News Desk - China
marketing@alchempro.com
