WTO on Tax & IPR
The WTO is launching another American-led investigation into China – this time the tax regime relating to international trade (according to Reuters):
“The United States and Mexico have argued that China’s tax refunds, reductions and exemptions discriminate against imported products, or subsidise Chinese exports…China argues that its tax laws are consistent with WTO rules and says the two complainants misunderstand them.”
Misunderstood tax laws? Not a big surprise, but not a great defense! It will be interesting to see the detail on this one. But tax is not the only issue being addressed:
“In a separate case on Friday, China blocked an initial U.S. request for a WTO panel to investigate China’s intellectual property rights protection and enforcement.”
Blocking tactics will no doubt have to give way to hard action, as this is an economic and political hot potato that will not go away.
See news sources:
WTO sets up panel to investigate China tax regime
Reuters India – Mumbai,India
GENEVA (Reuters) – The World Trade Organisation (WTO) on Friday launched a panel to investigate China’s tax regime that the United States and Mexico allege …
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