South Africa

A COMPLAINT brought before the World Trade Organisation (WTO) against China over incentives to its local manufacturers to boost the use of local content in domestic production may have far-reaching implications for SA.

The complaint involves China's granting of tax refunds, reductions and exemptions to companies -- many of them state controlled -- that use local inputs in their production processes. Mexico contends the practice is incompatible with WTO regulations as it discriminates against foreign products beyond negotiated tariff concessions.

The trade and industry department says this will be a critical year for SA's trade negotiations in the international arena, marking out the country's parameters in international trade relations.

Deputy Minister of Trade and Industry Rob Davies said yesterday these parameters would be determined by the outcome of talks on three trade treaties.