Brussels, 12/05/2016 (Agence Europe) - In a common resolution from the EPP, S&D, ECR, ALDE and Greens/EFA groups adopted at the plenary by 546 votes in favour, 28 votes against, with 77 abstentions on Thursday 12 May in Strasbourg, the European Parliament called for the application of a specific anti-dumping method for calculating unfair exports from China because the latter had not met the five criteria established by the EU for granting market economy status.
The EP is recommending, however, finding a solution that ensures compliance with EU obligations at the WTO, particularly the Chinese accession protocol to the WTO, which includes changes in the way China is treated as part of the EU's anti-dumping investigations. China is currently considered by the EU as a non-market economy.
In its resolution, the EP estimates that China "is not a market economy" and has still not met all the five criteria established by the EU for deciding what constitutes a market economy.
It is calling on the Commission to reach an agreement with the EU's main trading partners during the next G-7 and G 20 summits, with regard to the best way of guaranteeing that all the provisions in section 15 of China's accession protocol to the WTO (which will continue to apply after 2016) have full legal value in their respective national procedures. It is also calling on the Commission to oppose any unilateral decision to grant China the status of the market economy, which it believes is a question that should be raised at the next EU/China summit.
The EP request the Commission to "duly take into account" the concerns expressed by industry, the trade unions and other European stakeholders regarding the impact of granting China the status of a market economy on employment, environment, standards and sustainable economic growth in the EU in all the production industrial sectors concerned. The Commission is, in this connection, urged to "ensure job protection".
As long as China fails to respect the five criteria for claiming the status of a market economy, the EP is recommending that the EU uses "a non-standard method" for anti-dumping and anti-subsidy investigations to target unfair Chinese exports and take into account the prices on Chinese markets, as well as the structure of the companies in question and the assistance they benefit from. The use of this specific methodology should comply with the provisions in section 15 of China's accession protocol to the WTO, which the EP says "leaves sufficient margin" for applying a "non-standard" method.
The EP also underlines the "imminent necessity" of general reform of the EU's trade defence instruments to guarantee European industry a level competitive playing field in relation to China and other trade partners, whilst respecting WTO rules. It is therefore urging the Council to rapidly come to an agreement with it on the draft modernisation of trade defence instruments put on the table by the Commission in April 2013 but which had been blocked at the Council since December 2014 (see EUROPE 11202), despite the fact that the EP reached a position on this question in April 2014 (see EUROPE 11063).
Rejection of MES to China largely welcomed so far at European Parliament Franck Proust and Tokia Saïfi from the EPP stressed "There is no question of granting MES status to China!" They also called on member states not to "repeat the fiasco" of the solar panels episode or the individual selfishness that damaged solidarity and that they "finally" reform the trade defence instruments.
The S & D group welcomed the EP rejection and its request not to grant MES status to China if it did not fulfil all the necessary criteria. David Martin said "This vote sends a strong signal that the European Parliament will not accept any measures that weaken our ability to defend ourselves from unfair Chinese competition". Alessia Mosca (Italy) said "This was not a vote pro or against China, this is not a protectionist attitude: this is about defending our industries - and our standards - from unfair competition".
Alexander Graf Lambsdorff (Germany) and Marietje Schaake (Netherlands), speaking for the ALDE group underlined the need for a "balanced" legislative proposal to be put on the table as soon as possible and that it is "fully compatible" with the EU's obligations to the WTO, whilst enabling the EU to "maintain its ability to take efficient measures to fight against dumping practices, whilst taking into account the interests of heavy industry and those of importers and transporters".
Yannick Jadot speaking on behalf of the Greens/EFA said, "judging by all the evidence, China is not a market economy. The EU therefore has no reason to treat it as such, as long as the required criteria have not been fulfilled and it must, on the contrary, maintain all its instruments guaranteeing fair competition and enable it to maintain its industry and protect jobs". He concluded that "the EU must urgently and substantially reinforce their trade defence instruments, which have proved ineffective over the past few years. The lack of robust anti-dumping measures and the division between member states that are more anxious to maintain the good relations with China than the general European interest are responsible for the destruction of enterprise and jobs. It is time that, similarly to the US, the EU includes genuine trade diplomacy in its common trade policy". (Original version in French by Emmanuel Hagry)