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China, EU close to resolve dispute

By Jiang Wei (China Daily)
Updated: 2006-07-12 08:37

China and the European Union (EU) are likely to resolve their disagreement over China's tariffs on imports of auto parts through continued consultation.

"The common understanding is we are not interested in litigation but in the resolution (of the dispute)," visiting EU director-general for Enterprise and Industry Heinz Zourek said.

Zourek made the remark after his meeting with Zhang Guobao, China's vice-minister of the National Development and Reform Commission.

Serge Abou, an ambassador with the European Commission's delegation to Beijing, who also attended the talks with Zhang, said it was "the first time" the European side had received a clear message that China wanted to discuss the issue with the EU.

Abou said the delegation would convey the message to authorities in Brussels.

He said the two sides are still at the consultation stage and do not want to go through the litigation process.

The Chinese side is yet to comment on the meeting.

The EU, together with the United States, filed complaints on March 30 to the World Trade Organization (WTO) against China, accusing the country of violating its WTO commitment by imposing a discriminatory tariff regime on foreign car parts.

According to a regulation on the imports of vehicles implemented last April, China applied the tariffs for "whole vehicles" (25 per cent) to imports of spare parts making up 60 per cent or more of the value of a final vehicle, although under its WTO commitment the country agreed it would lower its tariffs to 10 per cent by July this year.