Mexico accuses China of breaking world trade rules
Mexico issued its fourth World Trade Organization complaint against China, claiming China gives itself tax breaks and other deals. Mexico and China are major competitors in clothing and textiles.
A worker gathers material at Langsha Socks Group production plant in 2006. Mexico, who competes with china in textile and clothing production, filed a complaint against China with the World Trade Organization.
Eugene Hoshiko/AP/File
Geneva
Mexico has accused China of breaking World Trade Organization rules by giving tax breaks and other favorable deals to its own clothing and textile businesses, the global trade body said on Monday.
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Mexico filed a complaint with the WTO saying Beijing was effectively subsidizing Chinese companies in those sectors by exempting them from income taxes, value-added taxes and municipal taxes, the organization said in a statement.
Other Chinese support that Mexico said broke WTO regulations included cash payments from government agencies and discounts on loans, land rights and electricity prices.
It was Mexico's fourth WTO complaint against China, a competitor in many sectors including clothing and textiles.
China's use of subsidies and its failure to disclose them to the WTO have been the subject of strong criticism, especially from the United States.
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