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European Parliament Votes for Tougher Anti-Dumping Regulations

Laws & Regulations

BRUSSELS, Belgium – To fight dumped and subsidised imports from third countries the European Parliament voted for new anti-dumping regulations. The European Commission is no longer looking whether the exporting country has a for anti-dumping complaints, like for e-bikes which are currently under investigation, market economy states or not. The amount of state interference in the country becomes the decisive factor to impose anti-dumping duties or not.

European Parliament Votes for Tougher Anti-Dumping Regulations
“We are no longer only discussing whether China is a market economy or a not,” said Parliament’s spokesman Salvatore Cicu. – Photo European Parliament

According to the European Union “The aim of this new legislation is to step up protection for European jobs and businesses against unfairly cheap imports from third countries that interfere heavily in the economy.
The new trade rules will require trade partners outside the EU to meet international social and environmental standards, so as to prevent dumping.”

What’s new:

Some of the main elements of the new trade defence regulation are:

  • the impact of social and environmental dumping will be taken into account when deciding on anti-dumping measures,
  • the EU Commission is to monitor circumstances in exporting countries. EU firms may rely on these reports when lodging complaints,
  • there will be no additional burden of proof on EU companies in anti‑dumping cases, on top of the current procedure,
    small and medium-sized enterprises will get help to deal with procedures
  • all parties involved, particularly trade unions, may give input to decisions on trade defence measures.

Market economy or a non-market economy

Parliament’s spokesman Salvatore Cicu said: “We are no longer only discussing whether China is a market economy or a non-market economy, but whether our European system can and must create equal rules for everyone and whether these rules can offer the same opportunities to everybody.”
The European Parliament is negotiating further plans to update the EU’s trade defence instruments with a view to raising tariffs against dumped or subsidised imports from countries that do not interfere extensively in the economy.

‘Protecting interests of Chinese companies’

In response to the investigation on e-bike dumping by China announced by the European commission,  spokesman of China’s Ministry of Commerce Gao Feng stated: “We will closely follow the development of the case and watch closely to see if the EU conducts the investigation in accordance with World Trade Organization (WTO) rules. We will take necessary measures to firmly protect the legitimate rights and interests of Chinese companies.”
According to Gao the decision to start the investigation “also violates Article 15 of the Protocol on China’s accession to the WTO, as the EU still adopts the ‘surrogate country system’ to calculate dumping margins in investigations against China.”

When China joined the WTO in December 2001, which meant that the country could no longer be treated as a non-market economy for trade defence purposes, agreed upon a transition period of 15 year which ended early 2017.
The new rules will enter into force after the European Council formally approved them and they are published in the Official Journal of the EU.

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