Trade
Dispute Settlement

China lost her first case before the WTO in a dispute brought by the US, EU and Canada in connection with China's tariff treatment of auto parts imports. The WTO Appellate Body upheld most of the rulings by a panel which found the Chinese measure in violation of the WTO rules. While the Ministry of Commerce expressed “regret” over the decision, the always self-righteous government now has to live with the reality that it must comply with a ruling imposed against its will by an outside body. Industry analysts said, however, that the impact of the case on domestic auto industry would be minimal.