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The US has mostly prevailed against China in a WTO Dispute Settlement Body (DSB) case regarding Chinese import restrictions on US entertainment, such as CDs, DVDs, books, and computer software, the Associated Press reported.
The confidential verdict was issued to Washington and Beijing last month and will be made available to the public on 12 August. The ruling finds that Beijing violated international trade rules by requiring US entertainment products to be sold or distributed through Chinese state-owned enterprises, according to the AP.
The case involved two types of legal issues. On the subject of trading rights, the US charged that China unlawfully restricted imports of US goods - films for theatrical release, audiovisual home entertainment products (DVDs and VHS movies), sound recordings, and publications - by requiring that the products be sold through Chinese companies. Washington claimed these practices violated provisions of Part I of the Protocol of Accession and Article XI of the General Agreement on Tariffs and Trade.
On the subject of distribution services, Washington claimed that Beijing discriminated against US films by mandating their producers use Chinese distributors, a condition not required for Chinese movies. The US alleged that this practice violated Articles XVI and XVII of the General Agreement on Trade in Services.
But the case was not a complete victory for the US, the AP reported, as the judicial panel ruled partly in favour of Beijing on censorship rules that apply to US - but not Chinese - products.
ICTSD reporting; “U.S. gains ground in trade ruling on China,” THE ASSOCIATED PRESS, 23 July 2009.
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