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US to file piracy case against China at WTO

The Bush administration is contemplating to take its longstanding row with China over pirated movies, music and books to the World Trade Organization, a move that could fuel trade conflict between the two countries. The Bush administration has decided to file two cases to challenge China’s lenient enforcement of its own anti-piracy laws along with its strict restrictions on the distribution of foreign movies, music and printed material. The anti-piracy cases will indicate towards the conclusion of several years of effort within the administration to construct a case against China over assumed intellectual-property abuse. In recent times, the US administration officials have made it abundantly clear that they are close to file a formal trade complaint against China at the WTO in coming days, alleging that China has failed to prosecute all but a small fraction of the ever-present and visible street trade in the hard-hit American entertainment. Officials are preparing two cases against china to file in WTO. The first one contends that China sets too high a value on pirated movie or music disks before prosecuting violators. While another case, is raising questions over restrictions on the sale of foreign books and movies in the nation. According to an estimate, China’s illegal copying of movies, music and software cost US companies $2.2 billion in 2006 sales. While Bush administration officials and industry lobbyists were still examining the particulars of the U.S. complaints case, speculations are high that the administration may still fine-tune or delay the complaints to create balance for new announcements from Beijing. The US administration has a couple of times last year was on the verge of filing a similar complaint against china only to holdup at the last minute. The cases closely follow a spell of trade actions by the US in recent days. These include a challenge to export subsidies and a decision to apply duties to imports that gain advantage from state support, for example issues related to glossy paper. Interestingly, officials in Washington and Beijing have maintained that the legal disputes were a natural step in maturing trade relations between the two countries after a five-year grace period following China’s accession to the WTO.


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