Mexico'S Attack On China'S Textile And Garment Industry Policy

The Mexico government is targeting the mainland of China in the World Trade Organization (WTO).

And the clothing industry policy launched a bold attack, claiming that Beijing's support for its industry was almost entirely illegal.

Mexico has asked for an official consultation with the Chinese mainland government, which is the first phase of the official debate in this case.

Mainland China is highly unlikely to meet the needs of Mexico. Therefore, the Mexico government can, in accordance with the provisions of the WTO dispute settlement mechanism (DisputeSettlementBody), claim that China's textile and garment industry policies, undermine WTO's subsidies and balance of tax related measures, GATT (general agreement on Tariffs and trade), agricultural agreement and its commitment to WTO accession.

The Mexico government claims that under the world trade law, mainland China's support policies for its industries are illegal, including incometax, import tax (importduty), value added tax and exemption from municipal tax (VAT&municipaltaxexemptions), tax relief and tax rebate (reductionsandrefunds), low interest loans (low-costloan), loan extension payment (extendedloanrepaymentperiods), public bank debt relief (debtforgivenessbystate-ownedbanks), land use right price concessions, government fees refund (governmentfeerefunds), tariff discounts (discountedelectricityrates), cotton production, import and distribution subsidies, and government cash payments to enterprises.

In this case, if the United States and the European Union are willing, the two parties will be able to become the third party to support Mexico's proposal. In this regard, CassJohnson, chairman of the National Textile Association (NationalCouncilofTextileOrganization), welcomes and points out: "we strongly support the Mexico government's plan. We believe this is a key first step to expose the level of subsidies that China has made to its textile and garment industry in the past decades. It is good and good for everyone. We will urge the US government to support Mexico's government plan in WTO".

Nevertheless, so far, the US government has not stated whether it is a third party to support the Mexico government's proposal in WTO.

A spokeswoman for the US Trade Representative (USTR) said that the United States would get the complaint information from Mexico and assess its impact on the interests of the United States.

Mexico officials said with confidence: "whether or not any other countries join in the grand event, Mexico will win the battle successfully.

I believe that we have every reason to win the battle on our own. If any other country is willing to join us, we will unite the front line as we complained about the raw material case. "

At the beginning of this year, Mexico, the United States and the European Union joined the European Union in WTO to prevent the export of raw materials from mainland China.

Diplomats in Geneva believe that the United States will hold a presidential election in November 6th. It is impossible for the United States to stand out in the light of this case. However, the United States may soon have a clearer decision after the election.

For the EU, there are now indications that the importers of garments will persist in their opposition and exporters will support it.

However, a spokesman for the executive general of Trade Commission (DG) said, "there is no opinion on international trade cases in the investigation".

European textile

LuisaSantos, director of the International Affairs Department of the EURATEX, said that mainland China is a planned economic system, and that public sector resources are involved in the economy. That is why Mexico's accusations are likely to be legal. But EURATEX can not talk much before there is any specific information.

At the same time, in 2011, China exported 37 billion 400 million euros of textile and clothing products to Europe, only 24 billion 100 million euros at 2006, while European exports to China also increased from 1 billion euros in 2006 to 2 billion 100 million euros in 2011.

JefWintermans, director of the Holland fashion, interior design, carpet and Textile Association (MODINT), pointed out: "the EU's dispute over Mexico and Mainland China should remain aloof. Mexico's move will not help trade promotion. If Mexico wins (the mainland's subsidy for textiles and clothing industry is cancelled), the price of global garment will rise, just as the export price of the country is soaring due to the rising labor costs in mainland China.

Nor do I support any unfair trade measures, but I believe Mexico's move is obviously intended to protect their competitiveness.

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