CHINA: US Secretary of Commerce warns China it may lay a WTO case over enforcement of patents and copyrights

The United States' preference was dialogue but a WTO complaint was possible, visiting U.S. Commerce Secretary Carlos Gutierrez told a news conference in Beijing on Tuesday (November 14). "Our preference is to solve issues through dialogue. And if there is a need to take a case forward, that has specific circumstances and specific facts, then that is one of the tools we have at our disposal. But again our preference is dialogue," said Gutierrez. The warning from the top U.S. commerce official comes at a time when Washington is considering complaining to the World Trade Organisation about China's enforcement of patents and copyright. "Whenever we believe that dialogue on a specific case is not working, that we have exhausted all avenues, and the facts suggest that there is a clear violation going on, that we have to resort to other tools. A WTO case is a tool, but there are a lot of other tools at our disposal," said Gutierrez. Piracy was losing U.S. industry about $2.3 billion a year in revenues for films, music and digital goods. U.S. customs had been ramping up seizures of counterfeit DVDs, golf clubs, fashion bags and other copycat goods coming to the United States. In 2005, U.S. customs made 8,000 seizures valued at $93 million, but this year customs had made more than 14,000 seizures valued at over $156 million. Gutierrez also urged China to open more sectors to foreign investors to close a gaping trade gap between the two nations. "We believe the way to narrow trade deficits is by increasing our exports not by limiting China's exports to the US. That is what we agreed that strategically that is what we want to do," said Gutierrez. In September, the United States' overall trade deficit narrowed but its bilateral deficit with China continued to expand, according to U.S. figures issued last week. Imports from China increased 3.3 percent to a record $27.6 billion, and the U.S. trade deficit with that country grew 4.6 percent to a record $23.0 billion. The year-to-date trade deficit with China reached $166.3 billion, keeping at a pace to easily outrun last year's record of $202 billion. TRADE RELATIONS

ITN Source | November 15, 2006

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