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Related Keywords: alleging unfair, China agress to end program, Chinese companies in seven economic sectors, Chinese manufacturers and producers, Global economic meetings, known as Demonstration bases common service platform, prohibited export subsidies, provide export subsidies, range of products from metal to textiles, US Trade Representative

In a deal coinciding with global economic meetings in Washington, the trade representative's office said that China has agreed to end a program known as its "demonstration bases-common service platform" in which it provides export subsidies on a range of products from metals to agriculture and textiles to Chinese companies in seven economic sectors.

It comes about a year after the United States filed a complaint with the World Trade Organization about the program, alleging "unfair, prohibited export subsidies to a large range of Chinese manufacturers and producers".

Related Keywords: apply to signatory countries, fabric produced from yarn, fiber manufacturing operations, involves twelve countries, made by TPP country, PSF, qualify duty free status, starting up or expanding, Trade agreement, Trans Pacific Partnership, under negotiation, United States led, US Trade Representative, Vietnamese companies, Yarn forward rule

United States led trade agreement Trans-Pacific Partnership (TPP) which involves twelve countries, is presently under negotiation. A key part of the proposed TPP is a rule known as “yarn forward” which would require that only fabric produced from yarn made by a TPP country would qualify for the trade agreement’s duty-free status. The rule is intended to ensure that the trade benefits of the TPP only apply to signatory countries rather than outside players such as China. However, the rule also likely to have major effects on signatory countries, such as Vietnam.