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Mexico challenges Chinese support for textile exports

Tuesday, October 16, 2012

Mexico has accused China of breaking World Trade Organization rules by giving tax breaks and other favorable deals to its own clothing and textile businesses, the global trade body said.

Mexico filed a complaint with the organization saying Beijing was effectively subsidizing Chinese companies in those sectors by exempting them from income taxes, value-added taxes and municipal taxes.

Other Chinese support that Mexico said broke regulations included cash payments from government agencies and discounts on loans, land rights and electricity prices.

Source: Reuters