US and China Reach Trade Accord

[mandy]

The Bush administration announced Thursday that China has agreed to eliminate improper trade subsidies it was using to the detriment of U.S. and other foreign companies...

Schwab said China had agreed to eliminate WTO-illegal tax breaks that encouraged Chinese companies to export more to the United States and other countries. She said the Chinese had also agreed to scrap tax and tariff penalties that had penalized U.S. and other foreign countries in trying to sell their goods in China.

"This outcome represents a victory for U.S. manufacturers, producers and their workers," Schwab said in a statement. She said it would eliminate a variety of trade subsidies the Chinese government was using to the detriment of a wide range of U.S. products from steel to information technology...

full article: http://www.nytimes.com/aponline/business...1353992400&en=3821cb05f29b8054&ei=5088&partner=rssnyt&emc=rss