NAM President welcomes WTO's dispute settlement decision.
Press Release Summary:
July 22, 2008 - John Engler, President of NAM was pleased to see that World Trade Organization dispute settlement panel has ruled that China's treatment of imported automotive components from U.S. and other nations is inconsistent with WTO rules. WTO fulfilled its functions as globally recognized body where trade disputes are decided, showing full integration of China into global trading system.
Original Press Release
NAM President Welcomes WTO Decision On China's Discriminatory Treatment Of U.S. Auto Parts
Press release date: July 18, 2008
I am very pleased to see that a WTO dispute settlement panel has ruled that China's treatment of imported automotive components from the United States and other nations is inconsistent with WTO rules. This is the first World Trade Organization (WTO) dispute settlement procedure that has been brought against China. It is important to note that the WTO fulfilled its function as the globally recognized body where trade disputes are decided, and this shows in particular the full integration of China into the global trading system.
The NAM was a strong supporter of this case because we believe China's treatment of U.S. automotive component imports is highly discriminatory. While it is always best for all WTO members to comply with established trade rules, and when there is dispute, for nations to try to discuss the dispute before turning to the WTO dispute settlement process as a final step, the fact that this case, the first involving China, worked like any other dispute settlement panel shows that the WTO system is functioning as intended.
The fact that nations bring cases against each other in the WTO is not a sign of weakness of the global trading system, but rather a sign of strength of the system. Nations avoid ruinous bilateral trade wars by utilizing the dispute settlement system of the WTO.
The National Association of Manufacturers is the nation's largest industrial trade association, representing small and large manufacturers in every industrial sector and in all 50 states. Headquartered in Washington, D.C., the NAM has 11 additional offices across the country. Visit the NAM's award-winning web site at www.nam.org for more information about manufacturing and the economy.
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