MEXICO: Delays WTO panel on Chinese textile subsidies
Mexico has delayed a move to challenge at the World Trade Organization (WTO) what it claims are illegal Chinese subsidies for textile and clothing producers.
Mexico announced on 22 November that two days of talks between Mexican and Chinese officials in Geneva had failed to resolve differences between the two countries, opening the way for Mexico to request a WTO dispute panel to rule on its claims.
However, Mexico's first chance to seek a panel came and went on Friday (7 December) after it failed to inscribe a request on the agenda for the next meeting of the WTO's Dispute Settlement Body (DSB), due in Geneva on 17 December. The agenda closed 10 days before the meeting.
The next chance for Mexico to request a panel would be at a DSB meeting in January.
Mexico claims that China is providing illegal subsidies in the form of exemptions and reductions from income tax, import duties, and value-added tax, low-cost loans and debt forgiveness, discounted land use rights, electricity, cash payments, and other measures.
WTO officials said the new Mexican government under recently-elected president Enrique Peña Nieto, which took office on 1 December, has not yet signalled how it will proceed. However, Geneva diplomats expect the new administration will continue the same trade policy as the previous government.
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