Brussels, 19/07/2016 (Agence Europe) - On the eve of a second debate at the College of Commissioners on Wednesday 20 July on the question of the EU granting market economy status (MES) to China, the European employers' association, BusinessEurope, and the European Trade Union Confederation ETUC/CES launched an appeal. This appeal calls for a balanced long-term negotiated solution with China to be based on compatibility with both WTO and EU rules and underpinned by maintaining a full range of efficient trade defence mechanisms against unfair imports.
The two associations stated in a joint declaration that "A strong industrial base is of key importance for Europe's prosperity and growth. Current anti-dumping measures safeguard tens of thousands of direct and indirect jobs in Europe, with thousands more in sectors or product types which have not yet had to address unfairly traded imports. The EU should therefore maintain effective trade defence instruments that take the real market situation in China into account".
At the same time the close trade and investment ties between the EU and China call for a "differentiated approach". The question of Market Economy Status (MES) should be treated in accordance with WTO and EU rules and be "based on its own merits". In addition, a decision should be based on a solid and comprehensive impact assessment which takes into account China's policies and their impact on EU interests. The EU should engage in dialogue with China through all available channels and aim for "a balanced long-term solution".
BusinessEurope and the ETUC/CES say that the EU must coordinate with and take into account the positions of other major WTO members such as the United States, Japan and Canada. It is especially important that the EU avoids trade diversion of Chinese exports towards Europe as a consequence of differing views.
They also urge China to clearly demonstrate that it remains committed to comply with its obligations under the WTO, and that it "effectively" addresses the issues that give such rise for concern amongst the European business community and trade unions in the debate on its Market Economy Status. They also point out that China "urgently needs to tackle" overcapacity. (Original version in French by Emmanuel Hagry)