U.S., China Swap Auto Trade Complaints

The Obama administration has filed a complaint with the World Trade Organization accusing China of illegally subsidizing exports of autos and auto parts.

The White House says China provided subsidies of at least $1 billion in 2009-2011 to manufacturers that produce vehicles and components specifically for export.

The two countries have 60 days to try to settle the dispute. If no agreement is reached by then, the U.S. government can request a WTO arbitration panel to hear the case. Such cases typically drag on for 18 months or more.

The Obama administration also declares it will seek a WTO committee review of the claim it filed in July about Chinese duties on $3.3 billion of imported American vehicles. Beijing says it imposed the tariffs because it believes the U.S. bailout of Chrysler and General Motors violated WTO subsidy rules.

China lodged its own complaint with the WTO on Monday, objecting to a new U.S. law that allows the government to levy tariffs on $4.7 billion of aluminum, steel, tires, chemicals and other goods imported from China. The U.S. insists the duties merely offset the impact of Chinese government subsidies.