Mexico Takes Textile Dispute With China to the WTO

Mexico alleges that China provides subsidies such as tax exemptions or reductions to support textile industry.

Mexico has called for discussions at the World Trade Organization on Chinese support for its textile companies, a statement said on Monday.

Mexico said it sought the talks "because China appears to maintain a wide variety of measures that support producers and exporters of apparel and textile products, both directly and indirectly."

The measures mentioned by Mexico included alleged subsidies like tax exemptions or reductions, and import duty refunds that would be inconsistent with China's commitments to the WTO, the statement said.

Also on the long list of potential issues were "extended loan repayment periods, and debt forgiveness provided by state-owned banks" and "cash payments from Chinese government agencies at all levels to enterprises active in designated industries."

Requests for consultations represent the initial stage of formal WTO dispute procedures.

If a solution is not found within 60 days, the country that initiates

Copyright Agence France-Presse, 2012

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