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China announced on Saturday it has accepted a request from both the European Union and the United States for talks with China on auto parts tariffs under the World Trade Organization trade dispute settlement mechanism.

 

China's Ministry of Commerce said the timing and location of the talks have yet to be decided.

 

On March 30 in Brussels, WTO commissioners of the EU and the United States sent their requests to China's WTO commissioner Sun Zhenyu, seeking WTO talks with China on car parts tariffs.

 

The EU complained that some of China's rules on car import tariffs are not in accordance with WTO rules putting European car manufacturers at a disadvantage compared to local producers.

 

In responses to the request, Cong Quan, the spokesman of the Chinese ministry, expressed regret on the European Union's plan to file a WTO complaint against China's rules over imports of auto parts.

 

He said China is seriously considering the request for dispute settlement consultations from the EU and US on auto parts makers.

 

China said that China's tax is aimed at curbing tax evasion by some foreign auto manufactures, saying that some of them disassemble their cars before importing and then reassemble them in China thereby avoiding customs payments on importing whole cars.

 

Under WTO rules, if a resolution is not found in 60 days, then the EU and China can ask a WTO panel to rule on the dispute.

 

(Xinhua News Agency April 9, 2006)