ManagementVictory for US; WTO rules against China on limiting imports
The United States has won a case against China at the World Trade Organisation (WTO) which has ruled that it is illegally restricting imports of movies, music and books into the country.
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The WTO Appellate Body yesterday held that China was obstructing trade by forcing foreign suppliers to distribute certain copyright-intensive products through state-owned companies which is inconsistent with the Beijing’s obligations with the WTO.
"Today, America got a big win...The Appellate Body"s findings are key to ensuring full market access in China for legitimate, high-quality entertainment products and the exporters and distributors of those products," Ron Kirk, the US Trade Representative, said.
US companies and workers are at the cutting edge of these industries, and they deserve a full chance to compete under agreed WTO rules, he said. "We expect China to respond promptly to these findings and bring its measures into compliance," Kirk added.
Monday’s Appellate Body report and the WTO panel report, released on August 12, call on China to allow US companies to import into China films for theatrical release; audiovisual entertainment products, such as DVDs; music and other sound recordings; and reading materials.
In fact, Western countries have been complaining against the restrictions for long, which say that China"s rapid rise as a trade power has been in part aided by unfair policies that boost sales of Chinese goods abroad while limiting imports into its market.