Thursday, February 5, 2009

China mulls WTO move over India import ban

China will likely ask the World Trade Organisation (WTO) if an Indian ban on imports of its toys violates the trade body's rules, state media reported Wednesday, in a rare move by Beijing.

The case, affecting a quarter-of-a-billion dollars' worth of toys, is a sign that China will use WTO rules more often to fight new trade barriers as the global credit crisis makes nations more protectionist, the China Daily said.

It cited anonymous sources as saying the case would probably be brought before the WTO, while quoting legal experts reflecting China's apparent attitude to the ban.

"The ban cannot hold water. The Indian side (would be) doomed to lose... if the Chinese government appealed to the WTO Dispute Settlement Body," said Fu Donghui, of Albright Law Firm, according to the paper.

India banned toys coming from China on January 23 in an apparent bid to shield domestic manufacturers from cheap imports, saying the restrictions would be in force for six months.

The government agency did not give a reason for the restriction but the Press Trust of India said the ban was to protect local manufacturers and out of concern over the safety standards of Chinese-made products.

According to the Mumbai-based All India Toy Manufacturers Association, Chinese products make up more than half the Indian retail toy market, which was estimated to be over 25 billion rupees (500 million dollars) in 2007.

China may take similar moves against a European Union decision to impose tariffs as high as 85 per cent on imports of screws from China, the China Daily said.

In December, China protested at the WTO over US anti-dumping and countervailing duties imposed on four Chinese-made product categories including steel pipes and off-road tyres.

The protest was the second by China since its 2001 entry into the WTO and was aimed at thwarting trade protectionism amid the global downturn, state media said then.

No comments:

Post a Comment