GENEVA — China has rejected requests by the U.S. and seven other trading powers, including the European Union and Brazil, to join as interested third parties in talks aimed at resolving a World Trade Organization complaint filed by Mexico that asserts the world’s biggest textiles and apparel exporter provides a host of subsidies to the sector that breach global trade rules.
“I can tell you that we were disappointed that China did not permit interested third parties, including the United States, from sitting in on these consultations,” said a U.S. trade official, who did not want to be named. “The United States continues to believe that Mexico’s request for consultations appears to raise serious questions about numerous Chinese government subsidies that may be causing market distortions in the textiles and apparel sector. Mexico’s complaint also alleges that some of these subsidies are import substitution subsidies and export subsidies, both of which are prohibited under WTO rules.”
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