Hoge Chinese importtarieven op Europese auto-onderdelen - EU start zaak voor WTO (en)

The European Union has complained to the World Trade Organisation (WTO) that China is imposing high taxes on imported auto parts, saying the tariffs violate WTO obligations.

The two sides will now enter consultations in Geneva to clarify legal issues and seek a practical solution.

"It remains my strong preference and intention to seek an amicable solution to the issue," said EU trade commissioner Peter Mandelson in a statement.

The same issue was raised for the first time with the Chinese authorities in November 2004, with Brussels again asking Beijng to address the problem during an EU-China joint trade committee in October 2005.

The EU insists that China has not yet provided sufficient reassurance that the problem will go away.

If the consultations do not succeed within 60 days, the parties can ask for a WTO panel to rule on the dispute.

The US has also requested consultations with China on the same issue.

"We expect that country to treat us fairly," said president George Bush, according to media reports.

The complaint made by the EU comes at a tense time for EU-China trade relations, with Brussels set to impose tariffs on leather shoes imported from China.

The anti-dumping duties were described by China as a step backwards in trade relations with Beijing saying it might take the shoe case before the WTO in turn.

Last year, the two powers became embroiled in another dispute over Chinese textile imports, with millions of Chinese bras and jumpers ending up stuck in EU ports.