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Wednesday, March 22, 2006 - Web posted at 7:37:13 GMT

US wants active China role in WTO disputes system

SHANGHAI - China should be held to the standards of a mature trading partner, opening the possibility for it to be party to more disputes brought to the World Trade Organisation, a top US trade representative said yesterday.

"It is natural that there will be a large number of issues where we have differences," Deputy US Trade Representative Karan Bhatia said during a speech in Shanghai.

"Those that we fail to resolve through bilateral negotiations may have to be resolved through other means such as the WTO dispute resolution procedures."

Bhatia called China "an anomaly" in the low number of cases in which it was involved that were brought before the world trade body.

"I suspect this will change," he said.

Bhatia did not elaborate on any timetable or specific case the US might consider bringing against China.

Only one trade row against China had yet to go into the WTO dispute resolution system.

That case involved a tax refund for semiconductor makers, which foreigners complained amounted to a de facto subsidy.

The dispute was resolved in 2004 when Beijing agreed to stop giving the refund.

By comparison, the US has been involved in 86 cases involving the WTO dispute resolution mechanism.

-Nampa-Reuters

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