US says China agrees to end brand subsidies WTO case

The United States said on Friday that China agreed to end a series of "famous brand" subsidies that Washington challenged as illegal under World Trade Organisation rules.

The United States said on Friday that China agreed to end a series of "famous brand" subsidies that Washington challenged as illegal under World Trade Organisation rules.

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The office of the US Trade Representative said Washington and Beijing had signed the agreement to settle a complaint filed last December with the WTO.

"Export subsidies are illegal under WTO rules," the USTR said in a statement. "The termination of the subsidies will level the playing field for American workers in a wide range of manufacturing and export sectors, including household electronic appliances, textiles and apparel, light manufacturing industries, agricultural and food products, metal and chemical products, medicines, and health products."

The case centers on China's "Famous Export Brand" program and the "China World Top Brand" programme under which the government set out criteria for an enterprise to receive such designations. Enterprises involved in the programs had been entitled to various government preferences, including what Washington said appeared to be financial support tied to exports.