Brussels, 07/04/2016 (Agence Europe) - On Thursday 7 April at the European Parliament, MEPs from the Industry Committee (ITRE) and Leopoldo Rubinacci, the director for trade protection at the European Commission's Directorate General Trade were pitted against each other on the question of the possible impact that China's status as a market economy could have on European industry.
The director believes that recognising China as a market economy would translate into losses of around 250,000 jobs in all sectors throughout the European Union, while MEPs quoted figures of between one and several million jobs being lost. Commission estimates have therefore been significantly underestimated according to several MEPs, such as Edouard Martin (S&D, France), who questioned the methodology used by the Commission.
MEPs have based their estimates on a study published at the beginning of the year by US consultants, "Scott", which provides a band of several million jobs going. According to Mr Rubinacci, these figures are incorrect and the Commission study is more accurate because it takes into account jobs that are exclusively affected by anti-dumping measures.
One EP source informed EUROPE that the Commission did not originally want to carry out another study, but following the controversy created by the US study decided to undertake a counter study. The source explained that the "main problem is that the Commission study only takes into account direct jobs and not those of subcontractors, which will also be affected by China's recognition as a market economy". Even on the question of direct jobs in the steel sector the results are different, given that Eurofer, the association representing the European steel industry, announced that 350,000 direct jobs would be lost if China is recognised as a market economy, whereas the Commission only predicts a loss of 55,000 jobs.
The European Parliament is carrying out its own impact study, which is expected to be published next May. The action group on the recognition of China as a market economy (MES Action group), launched on the initiative of Edouard Martin has applied a specific methodology to carry out its impact study and a meeting is expected to take place on the subject on 20 April next at the European Parliament.
Divergences regarding the US model. MEPs also asked why the European Union was rejecting the US model, although it was more efficient in their opinion (see EUROPE 11513). Anti-dumping investigations last for two months in the US, whereas they last for an average of nine months in the European Union. The director said that "We are very proud of the European system… because it is much more balanced than the US model". He also pointed out that the Commission was taking to account not just producers of certain products but also the users of these products and the point of view expressed by consumers. He added that the US system was currently being criticised by the World Trade Organisation (WTO) and asked "What would we do if the US system was modified?”
The College of Commissioners will be meeting up again on 13 July next in an effort to tackle these different questions. It indicated that "by then, there is nothing more concrete to be expected from the Commission" in this connection. This position may prove worrying to the sector, which sounded the alarm several months ago regarding the urgency of the situation (see EUROPE 11513). (Original version in French by Pascal Hansens)