China unfairly taxes imported aircraft, says US

AFP, WASHINGTON: The United States launched a WTO challenge to China’s aircraft taxation on Tuesday, accusing Beijing of discriminating against foreign-made airplanes in breach of global trade rules.
President Barack Obama’s administration said Beijing’s exemption of certain airplanes in its nascent domestic aircraft industry from a 17 per cent value-added tax was unfair to foreign aircraft suppliers. In a request for consultations with China at the World Trade Organization on the issues—the first step in a dispute settlement process—the US Trade Representative said the tax breaks for domestic makers of aircraft under 25 tons “result in substantial discrimination” against imports.
The challenge comes as China is seeking to develop its own aviation sector to reduce dependence on and develop rival suppliers to foreign giants such as Boeing and European rival Airbus.
“China’s discriminatory, unfair tax policy is harmful to American workers and American businesses of all sizes in the critical aviation industry, from parts suppliers to manufacturers of small and medium-sized aircraft,” US Trade Representative Michael Froman said in a statement.

 

China unfairly taxes imported aircraft, says US

AFP, WASHINGTON: The United States launched a WTO challenge to Chinas aircraft taxation on Tuesday, accusing Beijing of discriminating against foreign-made airplanes in breach of global trade rules. President Barack Obamas administration said Beijings exemption of certain airplanes in its nascent domestic aircraft industry from a 17 per cent value-added tax was unfair to foreign aircraft suppliers. In a request for consultations with China at the World Trade Organization on the issuesthe first step in a dispute settlement processthe US Trade Representative said the tax breaks for domestic makers of aircraft under 25 tons result in substantial discrimination against imports. The challenge comes as China is seeking to develop its own aviation sector to reduce dependence on and develop rival suppliers to foreign giants such as Boeing and European rival Airbus. Chinas discriminatory, unfair tax policy is harmful to American workers and American businesses of all sizes in the critical aviation industry, from parts suppliers to manufacturers of small and medium-sized aircraft, US Trade Representative Michael Froman said in a statement.