Trade disputes between China and Mexico textiles

According to the WTO website, Mexico filed a consultation request under the WTO dispute settlement mechanism on China's textile and apparel subsidy policy on the 15th. This litigation mainly involves income tax, value-added tax and local tax relief, discount coupons, land rights and electricity prices, support for the cotton industry, and cash payments by government agencies. The person in charge of the Treaty and Law Department of the Ministry of Commerce said on the 16th that China has received a request for consultation from Mexico and will properly handle it according to the dispute settlement procedures of the WTO.

It is worth noting that this is the first separate litigation against China by the developing member countries at the WTO. Previously, China's case as a respondent in the WTO was initiated by developed countries such as Europe, America and Japan. Among them, there were also common complaints from Mexico. The most recent case was that the US and European Union inked the export of raw materials under the WTO.

A number of industry experts said that Mexico’s initiation of this lawsuit has economic interest considerations, but ultimately it intends to challenge China’s so-called “subsidy” system. In addition, this case has created a precedent for developing countries to prosecute China in the WTO, or it will lead other developing member states to follow suit. In the future, such lawsuits will become the norm, and China must make long-term preparations.

Bai Ming, a research fellow at the Ministry of Commerce, said that the competition between Mexico and China’s labor-intensive industries in the US market has been fierce. In particular, there are still many Chinese companies processing re-exports to the United States in Mexico in recent years. Therefore, Mexico’s intention to protect the domestic industry is also trying to warn China in other industries. “But what is more important is that this case has set a bad benchmark. Previously due to the cost and not necessarily benefiting, developing members are often cautious about prosecuting China. However, this case may increase the confidence of other developing member states and trigger follow-up actions. ".

Tu Xinquan, deputy dean of the WTO Research Institute of the University of International Business and Economics, believes that Mexico has chosen to sue now rather than earlier, and is “absurd”. He said that China's textile and apparel exports had the greatest impact on Mexico at the beginning of its accession to the WTO. At present, China's export structure has undergone changes. The growth rate and market share of textile and apparel exports have been declining, and subsidies are absolutely impossible.

"From the consultations proposed by Mexico this time, we mentioned in previous disputes between Europe and the United States and China, and in recent years, European countries and European countries have been keeping a close eye on China. Therefore, Mexico's move is inevitably Support from other countries, said Professor Gong Baihua of Fudan University School of Law. Fu Donghui, a partner of Jinchengcheng Law Firm, also stated that the growth rate of Chinese textile exports has been declining in recent years, and it is difficult to prove that it has caused serious damage to Mexican industry. It is difficult for Mexico to get actual benefits through lawsuits. In fact, it is responding to the frequent censure of the United States and Europe that recently subsidized me.

Fu Donghui also stated that it is normal to use laws to resolve disputes. At the level of multilateral dispute resolution mechanisms, there have been many cases of developing countries suing developing countries, but this is the first time that China has been the respondent. This is in fact unavoidable, or we must look at it with a sense of calmness. Gong Bohua also pointed out that the conflict is not only from developed countries in Europe and America but also from developing countries. This is an inevitable trend. Any member state has the right to sue and respond. “This is a beginning, and the future will be the norm. For China, the test of rules is greater, and it leaves us room for reflection.”

Recently, trade-related relief measures involving China from developing countries have shown a dramatic increase. "Economic Information Daily" reporter according to the Ministry of Commerce's public information statistics, just this year from May to now, from Brazil, Argentina, Thailand, India and other developing countries, China-related trade relief cases have exceeded 30, of which the newly initiated cases have About 20 from. This has exceeded the total of 14 newly launched in the first eight months of last year.