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Mexico; World Trade Organization: Economy Secretariat Accuses China of Unfair Trade Practices

(Nov. 23, 2011) The Secretariat of Economy of Mexico has continued to criticize before the World Trade Organization (WTO) China's trade practices deemed detrimental to fair and equitable competition. Highlighted among these practices are undervaluation, trade diversion, incorrect tariff classification of goods, and misrepresentation of the invoice value of packaged or bundled goods. The Secretary stated that by acceding to the WTO, China agreed not to use or to introduce minimum or reference prices as a means of determining the customs value, and to apply the Customs Value Agreement.

Similarly, Mexico explained to the Committee on Subsidies and Countervailing Measures of the WTO that Mexico continues to find cases where the indicated unfair practices persist, notably through the use of insurance export credits.

Mexico also expressed concern before the Committee on Trade-Related Investment Measures that China continues to impose performance requirements on foreign companies interested in investing in that country.

On September 28, 2011, the Secretariat of the Economy informed China's Minister of Commerce, Chen Deming, of the concern on the part of the Mexican government and private sector about the variety of business practices that violate China's commitments to the WTO. (Expresa México sus Preocupaciones en la OMC sobre Diversas Prácticas Comerciales de China, Secretaría de Economía website (last visited Nov. 9, 2011); Eduardo Camacho, La SE Denuncia a China ante la OMC, EL UNIVERSAL (Nov. 4, 2011).)