Mexico has accused China of breaking World Trade Organisation rules by giving tax breaks and other favourable deals to its own clothing and textile businesses, the global trade body said on Monday.
Mexico filed a complaint with the WTO saying Beijing was effectively subsidising Chinese companies in those sectors by exempting them from income taxes, value-added taxes and municipal taxes, the organisation said in a statement.
Other Chinese support that Mexico said broke WTO regulations included cash payments from government agencies and discounts on loans, land rights and electricity prices.
It was Mexico’s fourth WTO complaint against China, a competitor in many sectors including clothing and textiles.
China’s use of subsidies and its failure to disclose them to the WTO have been the subject of strong criticism, especially from the United States.
The brief WTO statement announcing the latest dispute did not give details about the size of the alleged Chinese support or its impact on Mexico’s trade.