Mexico'S Chinese Government Negotiated Disputes Over Shoes, Clothing And Textiles Trade

October 15th on Chinese textiles and

Subsidy policy lodge a consultation request with the WTO under the dispute settlement mechanism.

The second day, Chinese businessmen

The head of the treaty and law division of the Ministry of the Ministry of Commerce said that China had received the request from the Mexican side for consultations and will properly handle the dispute settlement procedures according to the WTO.

China Textile Import and Export Chamber of Commerce told the newspaper 16 days ago that the organization had requested a meeting on ink side consultations.

According to the chamber of Commerce, the organization will collect views from Chinese enterprises, participate in Sino Indian consultations on behalf of enterprises, and convey the progress of consultations to enterprises.

According to the world trade organization's 15 day announcement,

On the same day, in consultation with China on the subsidy policy of textiles and clothing, Mexico expressed its dissatisfaction with the Chinese side in providing subsidies directly and indirectly to the clothing and textile industries.

According to the provisions of the world trade organization, the 60 sides of the time window, through consultation, find solutions to meet the needs of all parties. If not, they may be handed over to the World Trade Organization for rulings.

The subsidy policy mentioned in the consultation request includes: income tax, import tax, value added tax and some local tax relief to some enterprises.

Low interest loans provided by state-owned banks extend loan repayment period and debt exemption; land use preferential prices and refund of related costs of enterprises, electricity discounts; support for production, sales, pportation, processing, import and export, cotton use, and payment of cash to relevant enterprises at all levels of government departments.

Members of the chamber of Commerce said that if it could not be resolved through consultation, it would be possible to imitate other countries from the bilateral trade disputes between China and Mexico, which would cause serious losses to China's textile and clothing exports.

According to Chinese customs statistics, Mexico was the second largest trading partner, the second largest export market and the fourth largest source of imports in Latin America in 2011.

It is not only a strong demand for domestic markets, but also Mexico, which is located between the two largest markets in the north and the south.

An important pit point.

The North American Free Trade Agreement signed by Mexico in 1994 with the United States and Canada has the great advantage of exporting to the United States, while signing the regional free trade agreement with many Latin American countries.

The Ministry of economic affairs of Mexico said in a 15 statement that the government of Mexico has promised again that it will crack down on any behavior that puts its products at a disadvantage.

According to this newspaper, a strong and aggressive countervailing requirement comes from the change of Mexico's textile and clothing trade policies.

By the end of 2011, Mexico had abolished pitional measures for the import of goods originating in China.

In this connection, relevant chambers of Commerce and industry in Mexico

The association objected that the move would lead to a surge in imports of Chinese goods.

According to the Ministry of Mexico's economic promulgation of "imports to the Chinese people"

The pitional Commodities Act of the Republic was implemented. The sensitive commodities of the 204 tax numbers were subject to high tariffs during the pition period, but

The tax rate will be reduced year by year.

Among them, there are 112 clothing tax numbers, 26.

The tax code, the 14 textile tax code, and the 13 tax code for toys and game products.

The pitional measures expired in December 11, 2011.

In addition, the Mexico government's 5 year plan to reduce the most favoured nation tariff began to take effect in 2012, and this year it involves 339 garment tax numbers.

The plan based on the most favoured nation treatment of the World Trade Organization began in 2008, and the last round of tax cuts will be completed in January 2013. The most favored nation tariff on imports of garments and textiles to Mexico will fall to 20%.

According to the study of Hongkong's TDC, the export of men's knitted underwear made in China to Mexico is an example. The MFN tariff of this commodity is 30%, plus 80% of the pitional duty, the total tariff of the goods is 110%, but the MFN tariff of this commodity is 25% at present, the tariff of the pit period has been cancelled, and the MFN tariff will be reduced to 20% after 3 months.

Pu Ling Chen, partner of Beijing Zhong Lun law firm, pointed out that the request for consultations under the WTO dispute settlement mechanism meant that the open outcome would not necessarily rise to litigation.

The Chinese textile import and Export Chamber of Commerce said that both sides of China and Mexico had a precedent for solving such problems.