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EU probes China post law for possible WTO violation

Published 04/29/2009, 05:26 AM
Updated 04/29/2009, 05:32 AM
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BRUSSELS, April 29 (Reuters) - The European Commission said on Wednesday it was investigating whether China broke world trade rules with a new postal law that allows only a state monopoly to deliver domestic letters and documents.

"We have received details of the new law and are currently analysing it to see if it contravenes the rules of the World Trade Organisation," Lutz Guellner, spokesman for EU Trade Commission Catherine Ashton, said.

The law approved on Friday allows only China Post -- also the industry regulator and pricing authority -- to deliver letters and documents posted within China, cutting out foreign firms such as FedEx Corp, TNT and United Parcel Service Inc. (Reporting by Darren Ennis)

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