China makes import concessions

International pharmaceutical companies will find it easier to export to China in future, following the ap-proval of its membership of the World Trade Organisation (WTO).

The decision was achieved by China making a wide range of concessions that will liberalise its commercial laws. This involves the scrapping of all China's restrictive import quotas for goods by the year 2005, together with a steep reduction in tariffs. Notably, said a European Union briefing paper, this includes pharmaceuticals, (down to 4.2%) and key cosmetics products (down to 10% from 30%).

The agreement will also insist on other WTO countries abolishing their own import quotas, allowing greater access to Chinese pharmaceuticals, although in many cases, these restrictions have already been scrapped.

It also establishes the right of foreign companies to be treated fairly within China, without discrimination being shown in favour of locally produced goods. If China breaks the commitments that it has made, it can henceforth be challenged at a WTO disputes tribunal.

Notably, this would include breaches of rules under the TRIPs agreement, to which China has also signed up.