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Kirk Welcomes WTO Report Findings

by Leroy Baker, Tax-News.com, New York

12 August 2009

US Trade Representative Ron Kirk welcomed the results of a World Trade Organization (WTO) dispute settlement panel report that found major Chinese restrictions on the importation and distribution of copyright-intensive products such as theatrical films, DVDs, music, books and journals are inconsistent with China's WTO obligations.

The WTO panel called on China to come into compliance with its obligations to allow US companies to import these products into China and to eliminate the discriminatory requirements faced by imported products and their US distributors in China.

"Today, a WTO panel handed a significant victory to America's creative industries," said Ambassador Kirk. "These findings are an important step toward ensuring market access for legitimate US products in the Chinese market, as well as ensuring market access for US exporters and distributors of those products. We will work tirelessly so that American companies and workers can fully realize the market opening benefits that this decision signals."

The United States initiated the WTO dispute process against China because of serious concerns about shortcomings in China's legal regime governing the importation and distribution of copyright-intensive products. After unsuccessful consultations, the United States moved to institute panel proceedings. The result of those proceedings, released in today's WTO report, clearly addresses these shortcomings.

In addition to addressing discriminatory requirements on American importers and distributors, the findings also call on China to allow US companies to partner with Chinese enterprises in joint ventures to distribute sound recordings over the Internet.

Ambassador Kirk noted, "This decision promises to level the playing field for American companies working to distribute high-quality entertainment products in China, so that legitimate American products can get to market and beat out the pirates. To me, that is a clear win. We believe that this report will help pave the way toward more open trade between China and America."

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