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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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Under terms of the agreement, Mexico placed fixed tariffs of up to 1000 percent on products including textiles, shoes and toys, all vulnerable to being undercut by cheaper Chinese imports. The tariffs gradually decreased to zero by December 2011.

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In January 2009, Mexico challenged grants, loans and incentives that Beijing offered Chinese companies. The United States and Guatemala filed identical cases against China at the time, but none progressed to the litigation stage.

In January this year, Mexico, together with the European Union and the United States, won a WTO case againstChina's restrictions on exports of raw materials.

Last month the United States launched a WTO complaint against Chinese car exports. China hit back with its own suit, saying U.S. duties targeting export-promoting subsidies themselves broke WTO rules.

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