The World Trade Organization on Dec. 15 denied an appeal by China regarding that country's imposition of what the U.S. and certain other countries consider illegal tariffs on imported auto parts, according to the Office of the U.S. Trade Representative. "China’s discriminatory taxation of U.S. auto parts is fundamentally at odds with core WTO principles," said U.S. Trade Representative Susan Schwab." The WTO appeals body agreed. Upon accession to the WTO, China adopted regulations that impose a 25% tax on each imported auto part that is incorporated into a vehicle (including commercial vehicles) that fails to meet certain local content requirements, according to Schwab. The tax unfairly discriminates against the use of imported vs. made-in-China parts, encouraging parts suppliers to locate production plants in China rather than keep them in the U.S., she said. Canada and the European Union joined the U.S. in its complaint against China.