As long as China has not complied with five Economic criteria of the European Union market, its exports have to be applied with non-standard methods for anti-dumping and anti-subsidy investigations, as noted by members of the European Parliament in the resolution approved on 12 May.
According to MEPs, it is necessary in order to secure fair competition conditions for EU companies and protect EU jobs.
The EU has to find a way to also comply with requirements of the World Trade Organization. China believes that following its joining of WTO, other countries have to automatically recognize it as a market economy starting from 11 December 2016, as reported by EP press-secretary in Latvia Signe Znotina-Znota.
The resolution approved by the EP with 546 votes in favour, 28 votes against and 77 abstaining from the vote, MEPs ask the European Commission to submit a proposal that would provide balance between the two needs.
EP urges the commission to take into account concerns of EU manufacturers, employers and other sides in regards to the possible effect on jobs, the environment and economic growth in the EU if China is provided a status of a market economy. China’s overproduction capacity and cheap prices already significantly impact social, economic and environmental sectors of the EU, especially considering the crisis of the steel industry.
MEPs note that 56 of the current 73 anti-dumping measures in the EU are applied specifically to imports from China. It is also noted that everyday trade turnover with China exceeds EUR 1 billion makes it one of Europe’s most important trade partner. According to MEPs, China’s market is ‘a driving force behind a number of EU sectors and brand profitability’.
MEPs ‘oppose any king of one-sided market status provision to China’. Instead, MEPs ask the commission to coordinate EU’s actions with other large trade partners and China in order to make sure WTO rules are not breached. In order to ensure that, opportunities provided by G7, G20 and the upcoming EU-China summit.
MEPs emphasize that reforms to the EU trade protection tools are ‘urgently needed’. The parliament also asks member states to unblock modernization regulations as soon as possible. The European Parliament had established its position on this matter in 2014.
It should be added that during the Tuesday debates European Commissioner Vytenis Andriukaitis confirmed that the crisis of the steel industry remains one of the commission’s main priorities. The commission continues working on a new solution to balance the needs of EU’s international commitments and secure powerful tools to protect the European market from dumping. The new regulations could be modeled after the example set by USA, calculating anti-dumping taxes for each case individually.