WTO reform proposal features penalties and bans, aimed at China

TOKYO -- World Trade Organization members that break its rules by favoring themselves would be punished under a U.S.-led reform plan whose details Nikkei has learned.

According to reforms to be proposed by the U.S., the European Union and Japan this month, members that are found not to have reported subsidies to domestic industries, and that do not shape up within two years, would face penalties including higher WTO contribution quotas, plus bans from chairing committees and asking questions at important meetings on member trade policies.