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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.

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The brief WTO statement announcing the latest dispute did not provide details about the size of the alleged Chinese support or its impact on Mexico's trade.

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Trade diplomats were not immediately available to comment on the case at the WTO's headquarters in Geneva.

Mexico's textile (CANAINTEX) and clothing industry (CANAIVE) associations, in a joint statement, called Mexico's official complaint "a highly important move."

"The existence of subsidies in China, which violate WTO regulations, give producers from that country an unfair advantage, distort international markets and seriously damage Mexican industry," they said.

Under WTO rules, China has 60 days to resolve the dispute by explaining its actions or changing its behavior. If no deal is reached, Mexico could ask the WTO to rule on the case.

In December 2011, Mexico and China signed off on a series a trade agreements that sought to protect Latin America's second largest economy from cheap Chinese imports.

The treaty - negotiated over a period of seven years - formed part of China's conditions for entering the WTO.

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