Mexico files trade complaint against China

Thursday, 01 March 2007 10:27:42 (GMT+3)   |  
After Japan last week joined the United States against China's alleged payment of illegal subsidies to manufacturers, Mexico followed suit on Monday this week by lodging a complaint at the World Trade Organization (WTO) against the Chinese government. Mexico's Economy Secretariat pointed out that its complaint was provoked by "the policy of Mexico to combat unfair trade that could affect the country's competitiveness" and "the concern stated by diverse sectors" of Mexico's manufacturing base. The complaint did not mention the products or industries in question or the extent of the financial damages incurred by Mexican companies. Mexico's action follows the US government's complaint filed with the Geneva-based WTO on February 2nd. Chinese bulk imports in Mexico have led to failures in trade business, and a trade deficit with Beijing. Mexico's trade deficit with China has increased nearly tenfold since 2000. Many factory jobs, for example in textile production, have been lost in Mexico, and electronics has moved across the Pacific as well. The Democratic majority in Congress has been urging the Bush administration to get tough on China, with which the US ran up a trade deficit of $232.5 billion in 2006.

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