US: Ready to use all options vs China on trade
(Reuters)
Updated: 2006-03-16 19:42

The United States will do whatever it can, including filing a case with the World Trade Organisation (WTO), to stop China discriminating against certain U.S. goods, Deputy U.S. Trade Representative Karan Bhatia said.

After a "top-to-bottom" review of its trade relations with China, the U.S. concluded it should treat China as a "mature trading partner", that must bear its responsibilities under a global rules-based trading system.

"The United States is prepared to use all necessary tools to secure China's compliance with its WTO commitments," Bhatia, on a visit to the Philippines, told reporters on Thursday.

"Hopefully, we will be able to work through those problems without resorting to litigation.

"But the hallmark of a mature trading relationship, and I think increasingly we and China have a mature trading relationship, is that we can make use of WTO mechanisms if it is needed," he said.

Both the U.S. and the European Union contend that China was violating WTO rules by imposing high tariffs on foreign auto parts after exceeding a certain quantity.

Many members of the U.S. Congress have urged the Bush administration to take stronger action on trade with China, arguing that the Asian state deliberately undervalues its currency by 15 to 40 percent to give its exporters an advantage.

Bhatia's comments come ahead of a Senate vote later this month on a bill that would impose a 27.5 percent tariff on Chinese exports to the U.S. unless Beijing revalues its currency.