Brussels, 18/05/2016 (Agence Europe) - Flag-bearer of nearly 30 industrial federations representing various sectors (ranging from traditional industries to renewable), Aegis Europe hailed, on Wednesday 18 May, the initiative presented by France and Germany at the European trade ministers' meeting of 13 May (see EUROPE 11551) to modernise the EU's trade defence instruments and resolve the thorny issue of granting China market economy status (MES).
In line with the resolution of the European Parliament on 12 May (see EUROPE 11550), the Franco-German document encourages the EU to take full advantage of the WTO rules that allow effective measures against dumping. The document is based on the fact that China's WTO accession protocol will still authorise, after December 2016, use of the 'non-standard' anti-dumping calculation methods to address distortions generated by a Chinese state-controlled economy, Aegis Europe explains.
“The two countries' initiative may show a way out of the EU's dilemma in the face of China's demand to be treated as a market economy, which would make EU anti-dumping instruments entirely ineffective. Germany and France ask for an effective solution within the bounds of the WTO rules. As they point out, there is no requirement that WTO members automatically grant China MES in 2016. And there is room enough for justified protection against unfair trade. Other major trading partners, like the US and Canada, take the same approach”, Aegis Europe comments.
By complying with China's WTO accession protocol, the EU would discourage retaliatory tendencies in China, Aegis Europe assures, because under the accession protocol, if Chinese companies and China cannot clearly prove that market economy conditions prevail for an industry or sector, specific alternative calculation methods not based on Chinese prices and costs are allowed, and must clearly be used to address state influence and dumping.
According to Aegis Europe, this is consistent with the joint German and French request for more efficient trade defence instruments. “An early warning system, ex officio investigations, the acceleration of proceedings, SME support and restrictions to the so-called lesser duty rule are good and appropriate suggestions to increase the efficiency of trade defence instruments, and to better protect jobs and investments in the EU against unfair trade practices”, Aegis Europe concludes, recalling that none of these measures are able to remedy the inefficiency of the EU's anti-dumping regulation, should MES be granted to China by the EU. (Original version in French by Emmanuel Hagry)