The United States has resolved a dispute with China over that country's industrial subsidies, which Washington had challenged at the World Trade Organisation, the top US trade official said on Thursday.
"This outcome represents a victory for US manufacturers and their workers," US Trade Representative Susaan Schwab said in a statement "The agreement also demonstrates that two great trading nations can work together to settle disputes to their mutual benefit," she added.
The United States began the case in February by targeting six Chinese export subsidy programs, covering up to 60 percent of China's exports, and three other programs that US officials said discriminate against imports by subsidising Chinese company purchases of local goods.
China said in March it was eliminating one of the export subsidy programs. However, the two sides were not able to resolve differences over the remaining eight programs and in July the United States took the formal step of requesting a WTO dispute settlement panel to hear its complaint. Now China has agreed to eliminate all of the subsidies the United States found objectionable by January 1, 2008 and has pledged not to reintroduce them, according to Schwab.
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