WTO Panel Rules China Must Open To Foreign Content

A World Trade Organization panel has found China has not respected some international trade obligations in a dispute brought by the United States alleging unfair treatment by China of US publications and audiovisual products, the WTO said on 12 August.

According to the decision, China has acted inconsistently with provisions of its WTO Accession Protocol, the General Agreement on Trade in Services (GATS) and the General Agreement on Tariffs and Trade (GATT).

According to a WTO summary of the panel report, the panel recommended [pdf] that the “Dispute Settlement Body request China to bring the relevant measures into conformity with its obligations under those agreements.”

The US Trade Representative’s Office and US rightsholders were quick to hail the outcome as a victory.

The case brought by the United States against China concerning imported films for theatrical release, audiovisual home entertainment products like video cassettes and DVDs, sound recordings and publications, was lodged in April 2007.

In the complaint, the US contested Chinese measures that reserved to certain Chinese state-owned companies the right to import films for theatrical release, audiovisual home entertainment products, sound recordings and publications, according to the WTO case summary. It also denounced Chinese measures that imposed market restrictions or discriminatory limitations on foreign service providers.

The panel disagreed with some aspects of the US case. China has the right to appeal the decision.

WTO panel report here [pdf].
Office of the US Trade Representative (USTR) statement available here.
Motion Picture Association of America statement here [pdf].
Association of American Publishers statement available here.

Update: An analysis of the decision by Brendan McGivern of the international law firm White & Case is available here [pdf].