BEIJING (dpa-AFX) - The US Government claimed Tuesday that it has secured another trade enforcement victory for American aviation manufacturers and workers against China.
United States Trade Representative Michael Froman announced that the United States has confirmed that China has ended discriminatory tax exemptions that had benefited certain types of aircraft produced in China. The United States challenged these tax exemptions at the World Trade Organization (WTO).
China's policy exempted certain aircraft produced in China - generally those under 25 metric tons by weight, including general aviation, business jets, and regional aircraft -from a 17 percent value-added tax. But it imposed those taxes on imported aircraft, including products manufactured in the United States. This impacted producers of American-made aircraft as well as American parts producers who provide components to foreign-made aircraft.
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