EU Parliament Rejects calls to Block China Market status + Asks Trade Defence Tools also on Others

*Strasbourg/Angelo Marcopolo/- By Rejecting Today 3 Amendements which had attempted to Exclude any Recognition of Market Economy status to China, EU Parliament prefered, rather, to Focus on asking to Create EU "Trade Defense Instruments" vis a vis also Other Partner Countries, while Free Trade Talks between EU and USA as well as various other Countries and/or Areas of the World are in the Making, shortly before Key forthcoming Global Summits of G8 and G20, in the run up to a December 2016 Time Deadline which would automaticaly include China among Market Economies for the Future, according to WTO Rules.  

However, under Pressure from some Industry lobbies, and concerned particularly about EU Steel Production's future, MEPs also called for an "Investigation" on eventual Dumping and Subsidy over Prices, "until China fulfills all 5 EU Criteria required to qualify as Market Economy", despite Beijing Government's recent efforts to Reduce Overcapacities in Steel, which represents Only 1/5 of EU's Imports, the 4/5 coming from Other Countries, as it protested. (Other Steel Importing Countries' group reportedly includes often Turkey, Ukraine, India, Brasil, ec).

And this, Despite the Recognition, by a Clear Majority of MEPs Votes, that "the Importance of the EU Partnership with China",  who is "the EU’s 2nd Biggest Trading partner, and the EU ...China’s Biggest Trading partner, ...with Daily Trade flows of well Over 1 Billion €", "whereas in 2015", Chinese "Incestments... into the EU ...Exceeded investment from the EU into China", "for the first time", and "Chinese Market has been the Main engine of Profitability for a number of EU Industries and Brands"..

>>> Meanwhile, it's by 527 Votes against only 107 that EU Parliament Rejected Today an Amendment which wanted to make it "Oppose Recognition of China's Market Economy Status".

+ MEPs Rejected also anOther Amendment which wannted to "Urge the (EU) Commission Not to Grant Market Economy status to China", was Rejected by an even Wider Majority of 549 Votes against Only 79.

++ Significantly, even a, comparatively, somewhat Milder attempt to express the Critiical View that, "Until China meets all 5 EU Criteria required, the EU should Not Recognize China as Market Economy", according to a 3rd Amendment tabled in this regard, was also Rejected by EU Parliament with 313 Votes against 152.

On the Contrary, MEPs prefered to soberly state on May 2016 that, for the Time being, "the 5 Criteria established by the EU to define Market Economies have NOT YET been fulfilled", and, therefore, "China is Not a Market Economy, as long as that matter is still Pending.

Nevertheless, already, in addition to BRICS' Countries, such as Russia and Brazil, it's also Switzerland, Australia, Singapore and New Zeland, among various (80) Countries throughout the Globe, who have reportedly Recognized China's Economy Today as having recently become mainly Market - oriented.

>>>But, the most Important development, seems to be EU Parliament's crystal-clear Political Will to "Stress the Imminent Need" to "Rapidly" adopt a much Wider, "General Reform of the EU's Trade Defence Instruments, in order to Guarantee a Level playing field for EU Industry", not only "with China", but also with "Other Trading Partners", among Many Countries accross the World.

=> For that purpose, MEPs, in Conclusion, "call on the (EU) Council to ... Seek Agreement with (EU) Parliament in the Modernisation of the (European) Union's Trade Defence Instruments" in general, according to a Resolution finaly adopted with a Crushing Majority of 546 Votes against Only 28.  

+ In this regard, EU Commissioner Vytenis Andriukaitis underlined, during EU Parliament's relevant Debate, earlier on Tuesday, that "it is becoming more Urgent than ever, for the Modernisation Package (on the above-mentioned, Wider "TDI"s), to be adopted. (EU) Parliament has done its job, but, unfortunately, the Council has been unable to take matters forward. As you know, the Commission is making every effort to Help the Member States to Break the Deadlock".

Because EU has "3 Options" :

(1) "Do Nothing", i.e. "No Change in Legislation", practicaly Refusing to Grant a Market Econoomy Status (MES) to China : Something which "would pose a High Legal Risk", "given that EU's methodology for China is Based on the very ... (WTO's) Protocol which Expîres in December".  This practicaly means, that, 15 Years after Beijing's Accession to the WTO, China should Start to be treated in an Equal manner as all other Market Econoomy Countries, particularly as it concerns the Anti-Dumping mechanism : F.ex. by Stoping to Compare with a 3rd, "Surrogate Country", in order to Calculate the so-called Normal Price of a Product, and, therefore, whetheer Chinese Products might risk to be sold at an Artificially Low Price in the EU Market : Something that the Government of Beijing denounces as "Unfair".

(2) "Secondly, .. Remove China from the List of Non-Market Economies, and apply the Standard Dumping Calculation", (which is more favorable to Beijing than that which Compared, until now, with a 3rd "Surrogate Country"s prices : Comp. Supra). I.e. do what "is usually called Granting Market Economy Status (MES)". But this "would involve a very High Cost in terms of potential Job Losses in the EU", as it "would .. No Longer be able to .. Protect against (possible) Unfair Trading practices" by China. And, at a,ny case, i.e. "Even without the current ... Overcapacity" of Chinese Production, "any such move would be Untenable", the EU Commissioner Warned.

=> (3) All this brings us to a "Third" option : "Introduce a New Approach", by "Changing the Anti-Dumping methodology", in a way "which shoule Maintain a Strong Trade Defence system in the EU", "while (also) giving effect to the expiry of certain provisions of the China Accession Protocol" to the WTO from December 2016, (i.e., apparently, by granting a Market Economy Status (MES). "This ... would help ensure that the Dumping Margins calculated would .. Reflect .. Distorsions .. more Accurately", (almost as the USA have done, as he noticed).

>>> Therefore, "Our (EU's) Trade Defence Instruments (TDIs) Must be Efficient and Effective", (particularly in view of the Expiry of certain WTO provisions on China  from December 2016 : Comp. Supra). So this object requires action by Member States in the (EU) Council to ensure that the Modernisation of our TDIs Moves forward Quickly". "In the meantime", EU "Commission is continuing an Impact Assessment", and "it's Imperative that Work is Completed in order to Enable" it "to Make a Decision" asap, he Urged in Conclusion.

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    - "Obviously the EU must Comply with its obligations under WTO Law, (about the December 2016 Time Deadline for granting MES to China : Comp. Supra). But it must also Balance the legitimate concerns of European Producers and Consumers, ...while acknowledging China ...as a Strategic Trading Partner", stressed from the outset, on behalf of the EU Council, its Chairwoman-in-office, Dutch Minister Jeanine Hennis-Plasschaert.
    
    + "It is .. a Complicated file : On the one hand, we (EU) entered into Agreements with the Accession of China to the WTO, 15 Years ago, and we canNot just Ignore our Obligations", (f.ex. on Granting Market Economy Status to Beijing from December 2016, i.e. applying the General Anti-Dumping Calculation Methods  : Comp. Supra). "On the other hand, China is by No means a Market Economy, as ...many MEPs have stated, and ...we Need to Protect European industry and European Workers against Unfair Trade practices. In other words, we will need to Balance our International Obligations and our strategic Commercial Interests, the interests of our (EU's) Producers and Consumers", she added later-on.

    => That's why, EU "Council has reStarted discussions ...on Modernising the EU’s Trade Defence Instruments (TDIs)", already contained "on the Commission’s 2013 proposal", she anounced.  Indeed, "this might be the Moment to reflect on how to improve our Trade Defence Mechanisms,  with a view to Better tackling unfair trade practices and to ensuring a Global (i.e. Wider) level playing field for EU Companies". and "Strengthen our (EU's) Defences against Unfair Competition and Cheap Imports", from anywhere they might come.

In consequence,  EU "Council ... will discuss the Commission’s communication ... this coming Friday May 13, including New Ideas on how to modernise the EU’s Trade Defence Instruments (TDIs), in particular in the light of Economic Damage caused by Overcapacity in Third-Country Markets" accross the Globe, (i.e. Not Only vis a vis China, but also various Other States : Comp. Supra).

 - "The Dutch (EU) Presidency is doing everything" to "Overcome the Blockade" among EU Member States inside the Council, since "our Ultimate Objective is ... Strong and Effective Trade Defence Systems", Minister Hennis-Plasschaert concluded in fine.

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=> EU Commission is due to take Decisions on China during this Summer 2016, i.e. shortly after Next Week's Visit to Beijing by French Foreign Minister, (and former Prime Minister), Jean-Marc Ayrault, who was, at the Beginning of EU Parliament's Plenary Session,  last Monday, present in Strasbourg.

(../..)

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("DraftNews", as already send to "Eurofora"s Subscribers/Donors, earlier. A more accurate, full Final Version might be Published asap).

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