EU Parliament rejects market economy status for China
Belgium, Brussels: The European Parliament last week voted through a Resolution on Market Economy Status (MES) for China, highlighting its firm reservations on granting China MES.
The European Steel Association (EUROFER) released a statement welcoming this Resolution and asking the European Commission to consider more seriously the wider implications of MES on the steel industry, as well as to motivate member states to overcome the blockage in the Council on the modernisation of Europe’s Trade Defence Instruments (TDI).
“A significant majority of MEPs do not believe it is the right time to grant China Market Economy Status. China is not a market economy, and thus cannot be treated as such for the purpose of anti-dumping investigations”, said EUROFER Director General Axel Eggert.
EUROFER indicates that of the 37 anti-dumping measures currently in force on steel in the EU, 16 involve China in some way. Were MES to be granted, the EU’s trade defence measures would be rendered ineffective, with no other enforcement tool available.
The European Parliament Resolution also urges the Council to agree on the modernisation of the EU’s TDIs. The Commission proposal has been at an impasse in the Council since 2013 as member states such as the UK and the Netherlands continue to block the lifting of the Lesser Duty Rule.