The United States Requests To Participate In The Case Of Subsidized Textiles And Clothing In Mexico And China.

In the notice of WTO of November 1st (2012), in accordance with Article 4.11 of the WTO dispute settlement rules and procedures, the United States requested participation in the Mexico's complaint of illegal subsidies in mainland China.

Consultations with the clothing industry dispute case show that they have substantial trade interests in the consultative business of the dispute and therefore have legitimate reasons to participate in consultations.

In October 15th this year, Mexico filed a dispute settlement procedure on the mainland China's complaint of illegal subsidies for textiles and clothing manufacturers. It advocated that the export of textiles and garments to the United States from 2001 to 2011 would result in a reduction in price, price restraint and inability to raise the selling price resulting from the export subsidies in mainland China, which would replace its exports and impede its export to the United States, thereby causing serious damage or serious harm to them.

Following the 3 countries of the European Union, Australia and Guatemala, the United States requested consultation in the Sino Mexico dispute case.

The EU says it has substantial trade interests in the dispute cases, because it is the second largest exporter of garments and textiles in the world in 2011.

Australia points out that its substantive trade interests include its exporters of textiles and clothing and the main exporters of cotton. Besides, there are also relevant interests in the appropriate description of the relevant provisions of subsidies, including agricultural subsidies.

Guatemala said its annual textile products amounted to $805 million.

The volume of trade, which accounts for more than 13% of the total export volume, will be affected, and there is also a systematic explanation of the "applicable agreement".

China will give advice on whether to agree to the 4 members' participation in the case.

If the Chinese mainland does not agree with the alleged substantive trade interests, it may refuse to participate in consultations.

Mexico said that mainland China provided illegal subsidies in the form of tax exemption or reduction (mainly income tax), giving preferential treatment to goods and services other than ordinary infrastructure, such as land, electricity and

And raw materials such as polyester, which include direct subsidies such as manufacturers' subsidies and debt relief.

If China and India failed to consult in mid December of this year, Mexico could request WTO to set up a dispute settlement panel to decide.

So far, the US side has refused to support Mexico in the dispute, while Mexico's complaint information is partly from US government information, while some measures are used by the United States last year to accuse China of not giving notice to the WTO Secretariat.