EU Needs to Rectify Anti-Dumping Measures Against China

The EC even decided to invite relevant Chinese enterprises to discuss possible solutions. The moves by the European Union are a vital step to rectify its discriminatory measures and legislation inconsistent with the rules of the World Trade Organization. China welcomes them.

But the key is that such reviews should not be a showcase any more, and the EU needs to take concrete action to amend its anti-dumping legislation and practices that violate WTO rules.

In July 2011, a WTO panel ruled that EU anti-dumping regulations breach international trading laws and are discriminatory. In particular it rejected the EU's approach to non-market economies, which effectively applies a single anti-dumping duty to the whole country rather than for individual firms. That's unless they can prove that they are independent of the state. Hence the EU needs to make rectifications in two aspects. One is to withdraw its anti-dumping measures on fasteners imported from China, and the other is to amend its legislation on anti-dumping.

China is the world's biggest producer of screws, nuts, bolts and washers and the EU is a major destination for the fasteners. Despite nearly nine months' delay, the EU finally made a positive response to the WTO rulings by announcing its willingness to review anti-dumping measures.

More importantly, the EU needs to amend its legislation on anti-dumping. It needs to revise in particular the article of "a single anti-dumping duty," which, as earlier mentioned, is inconsistent with the WTO Anti-dumping Agreement.

It was reported that the EU has started procedures to amend its Basic Anti-dumping Regulation, but the prospects of that effort are still unknown. The WTO panel has called on the EU to bring its regulations into conformity with the WTO requirements. To this end, the EU is expected to complete the amendment by October.

The problem with the anti-dumping cases, in essence, relates to China's Market Economy Status. In recent years, a number of economies across the world, including developed economies like Switzerland and New Zealand, have recognized China's market economy status. But the EU, China's biggest trading partner, still refuses to do so. The EU, more often than not, spares no effort to exaggerate the price margins of products imported from China, which leads to successive anti-dumping investigations. China has so far become the world's biggest victim of the anti-dumping measures. Therefore, it is high time that the EU rectified its discriminatory practice and measures, and recognized China's market economy status as soon as possible. So the EU should take concrete action rather than just pay lip service so as to promote trade and economic cooperation with China.