Mexico emerges as biggest obstacle to China’s membership of the WTO
Mexico is the only member of the World Trade Organisation (WTO) that has still not signed a deal with China, threatening to complicate the country’s much anticipated accession. Both countries are keen to maximise access to the US market, but Mexican manufacturers are concerned that Chinese products will flood the market when tariffs come down.
The negotiations have stalled over the extension of tariffs on Chinese products such as footwear and textiles. Mexico wants them to remain for eight years, China is offering three. Any compromise that is reached will have to be offered to all 141 members, meaning that China’s entry will be delayed because all the members will naturally be interested in the conditions of the deal.
Mexican manufacturers have been complaining for years that they can not compete with China due to the country’s low wages and lack of environmental controls. They also claim that Chinese products often arrive in Mexico through the US, claiming to be made there.
However, officials from both sides say that the lack of any agreement should not delay China’s accession. China’s chief WTO negotiator Long Yongtu stated that China will definitely join by November when a conference is planned in Doha, Qatar from 9-13 November.
