U.S. Says China Agrees to End Brand Subsidies

(Industry Week – Rob Lever, Agence France-Presse)

On December 21 the U.S. announced that China will end a series of “famous brand” subsidies for a range of goods that Washington challenged as illegal at the World Trade Organization. The office of the U.S. Trade Representative said the countries signed an agreement to settle a complaint filed last December with the WTO challenging an array of programs viewed as improper export subsidies.

“Export subsidies are illegal under WTO rules,” the USTR said. “The termination of the subsidies will level the playing field for American workers in a wide range of manufacturing and export sectors, including household electronic appliances, textiles and apparel, light manufacturing industries, agricultural and food products, metal and chemical products, medicines and health products.”

The case centers on China's “Famous Export Brand” program and the “China World Top Brand” program under which the government set out criteria for export aid. Enterprises involved in the programs had been entitled to various government aid, including what Washington said appeared to be financial support tied to exports. Read more here.