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Market Economy Status for China? AEGIS Europe's views | Ines Van Lierde | EPCF 2015


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Ines Van Lierde, AEGIS Europe spokesperson, presented the industry alliance's views on the non-market economy status (MES) of China on 1 December 2015 at the European Parliament Ceramics Forum in Brussels.

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Market Economy Status for China? AEGIS Europe's views | Ines Van Lierde | EPCF 2015

  1. 1. Market Economy Status for China ? The views of AEGIS Europe Plenary EP Ceramics Forum - 1st December 2015
  2. 2. Who are we? • AEGIS Europe brings together over 30 European manufacturing associations committed to free and fair international trade. • Our members account for more than €500 billion in annual turnover and millions of jobs across the EU. • United against automatic Market Economy Status for China
  3. 3. But what’s it all about? Granting automatic Market Economy Status to China would make EU anti-dumping measures ineffective, leading to: Unlimited access for dumping Chinese products onto the EU market To avoid unfair competition and safeguard millions of jobs, Europe must maintain the effectiveness of its trade defence instruments (especially when China does not play on a level playing field)
  4. 4. Why Trade Defence Instruments are necessary CURRENTLY 80% of all EU anti-dumping and anti-subsidy investigations are against China Global anti-dumping and anti-subsidy actions against China have increased by 60% since 2010
  5. 5. China fails on 4 out of 5 market economy criteria 1. Low governmental influence over allocation of resources and decisions of enterprises 2. Absence of state-induced distortions in operation of enterprises linked to privatisation 3. Transparent and non-discriminatory company law 4. Laws on respect of property rights and operation of a functioning bankruptcy regime 5. Existence of a genuine and independent financial sector
  6. 6. Consequences for EU industries and jobs AEGIS Europe assessment of direct jobs at risk: • + 300,000 jobs linked to the products covered by AD measures Recent study from US Economic Policy Institute estimates that the EU’s unilateral granting of MES to China would result in: • Up to 3.5 million EU jobs at risk • 1-2% reduction in EU GDP • Up to €142.5 billion increased EU imports of manufactured goods All industries are vulnerable, in particular ex motor vehicle parts, solar panels, steel, ceramics, glass, aluminium, bicycles…
  7. 7. Our main messages  There is no legal obligation to grant MES (no automaticity): China must meet the relevant technical criteria → Section 15 (d) of the Chinese WTO Accession Protocol  The EU needs to coordinate with key international partners, especially the US → link with TTIP  Before adopting any proposal, the Commission must carry out a comprehensive economic, social and environmental impact assessment → Better Regulation principles
  8. 8. Our main messages  China has to first deliver its own commitment to allow prices to be determined by market forces before Chinese prices and costs can be used → commitments are not unilateral….  There can be no reversal of the burden of proof, which must remain in the hands of Chinese producers → MET experience…  Anti-Subsidy procedures will not be useful → Chinese subsidies are not specific and China did not cooperate
  9. 9. Thank-you! Email us at: Website: Twitter: @AEGIS Europe