U.S. to file piracy complaint against China

Bush administration, under pressure to cut trade deficit, to file cases against piracy, market access barriers.

By Parija B. Kavilanz, CNNMoney.com senior writer

NEW YORK (CNNMoney.com) -- The United States said Monday it will file two trade complaints against China at the World Trade Organization over piracy of American books, music, video and movies and limited market access for American products in China.

Washington will file two complaints with the WTO on Tuesday, according to the U.S. Trade Representative's office.

"Piracy and counterfeiting levels in China remain unacceptably high," U.S. Trade Representative Susan Schwab said in a statement. "Inadequate protection of intellectual property rights in China costs U.S. firms and workers billions of dollars each year, and in the case of many products, it also poses a serious risk of harm to consumers in China, the United States and around the world."

During a press conference, Schwab said market access barriers for genuine American books, movies and music products in China was an equally serious issue.

"These are the products that are the prime targets of piracy. By removing these barriers it will open the market to legitimate commerce in China," Schwab said.

The Commerce Department estimates that piracy and counterfeiting cost the United States about $200 billion to $250 billion a year, including as much as $24 billion from the sale of pirated goods in China.

Under the WTO regulations, the first step is for the United States to request for consultations with China to settle the disputes. But if the matter isn't resolved within 60 days, then the U.S. may refer the matter to a WTO dispute settlement panel.

The complaints would be the latest move on trade by the Bush administration, which is under growing pressure from Congress to reduce the nation's $232.5 billion trade deficit with China, one of Washington's biggest trading partners.

The Commerce Department last month announced a 180-degree turn in U.S.-China trade policy, saying the United States would start slapping tariffs on some goods it says are subsidized from China.

The move reverses a 23-year old policy of not applying countervailing duties on cheap goods from countries like China.

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.