TOKYO: Japan has applied to observe World Trade Organization proceedings against China that the U.S. initiated over alleged tax discrimination on imported airplanes, joining Canada and the European Union in asking to participate as an interested third party.
Japan’s Mitsubishi Heavy Industries Ltd., Kawasaki Heavy Industries Ltd. and Fuji Heavy Industries Ltd. are among major suppliers to Chicago-based aircraft manufacturer Boeing Co. The measures identified in the U.S. complaint, lodged Dec. 10, could adversely affect parts from Japan used in planes destined for China, Japan said in a request it filed Monday.
A Japanese Trade Ministry official declined to comment further Tuesday, referring to the government’s application to the WTO, which the trade body has yet to approve. Canada and the E.U. applied to join the discussions Dec. 22. The Chinese Ministry of Commerce didn’t immediately respond to a faxed request for comment Tuesday.
The U.S. alleges China imposes a 17 percent value-added tax on imported small and medium-sized planes, while exempting similar aircraft made in China, such as Commercial Aircraft Corp. of China’s ARJ21 regional jet. The U.S. also claims China has failed to publish the measures establishing these exemptions.
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