July 18,2008

Baucus Cheers WTO Decision On Auto Parts

Finance Chairman Champions Vigorous Trade Enforcement

Washington, DC – Senate Finance Committee Chairman Max Baucus (D-Mont) today welcomed
a World Trade Organization (WTO) final dispute panel decision that Chinese auto parts import
policies violate WTO rules. The panel found that the Chinese policies discriminate against
imported auto parts and unfairly favor Chinese auto parts suppliers. This panel decision follows
on the heels of a similar preliminary panel finding in February.

“This victory proves again that the WTO process can work and that China must follow the
rules of the road. I congratulate Ambassador Schwab and her team,” Baucus said. “I hope
that this victory will embolden this Administration to shift its enforcement efforts into high
gear.”

The auto parts dispute was brought to the WTO by the United States, the European Communities, and Canada in 2006. The three parties contend that China’s taxes on imported auto parts discourage automobile manufacturers in China from using imported auto parts in the assembly of vehicles. These regulations discriminate against imported auto parts in favor of Chinesemanufactured parts. China has the right under WTO guidelines to appeal the decision.

The Senate Finance Committee has jurisdiction over all U.S. international trade.

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