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Non-Market Economy Status of China | Alain Delcourt | EPCF 2015


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Cerame-Unie President Alain Delcourt presented the ceramic industry's views on EU Trade Defence Instruments and the non-market economy status (MES) of China on 1 December 2015 at the European Parliament Ceramics Forum in Brussels.

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Non-Market Economy Status of China | Alain Delcourt | EPCF 2015

  1. 1. Alain Delcourt Cerame-Unie President 1 December 2015 NON-MARKET ECONOMY STATUS CHINA
  2. 2. Overview •Key facts •Production trends by ceramic sector •Trade overview •Market economy status of China
  3. 3. 1. Key facts
  4. 4. 2. Production trends by ceramic sector Source: Eurostat 2015 BILLIONEUROS
  5. 5. 3. Trade overview 8.87 4.63 4.23 BILLIONEUROS Ceramic exports: Source: Eurostat 2015, Cerame-Unie data
  6. 6. 4. Market economy status of China • China's WTO accession protocol Article 15 • MES applies to anti-dumping investigations • Determines normal value (dumping margin) • China fails on 4 out of 5 market economy criteria • Only one subparagraph expires: Art. 15 a) ii • EU to evaluate impact before MES is granted • EU to coordinate with international partners 1 OUT OF 5 TECHNICAL CRITERIA MET
  7. 7. 4. Market economy status of China Example Chinese Product: calculation of dumping margins Export price to EU: €100 Compared against a “Normal Value” = a reference price China a non-Market Economy Normal value: €130 Higher price, according to Third Country “Free Market” Calculation of dumping margin: 130 – 100 = 30 China has Market Economy Status Normal value: €80 Lower price, according to state-run Chinese market Calculation of dumping margin: 80 – 100 = no dumping DUMPING MEASURES POSSIBLE DUMPING MEASURES NOT POSSIBLE VS.
  8. 8. 4. Market economy status of China • MES to be assessed in the context of TTIP negotiations • Redirection of Chinese exports away from the US to EU market if EU grants MES to China
  9. 9. 4. Market economy status of China • Effect on the ceramic industry if MES is granted prematurely • Around 338,000 jobs would be exposed in our sector (Eurostat) • Includes a number of micro enterprises not represented by CU • Cerame-Unie’s membership represents 200,000 direct jobs • 100,000 ceramic direct jobs are being defended by anti-dumping measures: • Ceramic wall and floor tiles • Ceramic tableware • Only efficient anti-dumping tools can level the playing field
  10. 10. 4. Market economy status of China Source: Eurostat 2015 • In force since Sept 2011 • Imports from China decreased by over 65% • If AD measures were removed around 70,000 direct jobs are at risk • Majority are SMEs Impact of effective AD measures in the ceramic tiles sector 2011 - 2015
  11. 11. 4. Market economy status of China In absence of AD measures in ceramic tableware sector 2004-2011 • Period: 2004 – 2011 (no AD measures in place) • China’s market share increased from 20% to almost 70% • Ceramic tableware sector lost over 33,000 direct jobs • Around 25,000 direct job currently at risk if AD measures are removed Source: Eurostat 2015
  12. 12. 4.Marketeconomystatus ofChina • Political decisions cannot ignore economic realities • Rigorous & transparent impact assessment • China to demonstrate first it fulfils market economy criteria • Until then, the EU should not grant Market Economy Status • Any unilateral EU action would be irreversible • EU should coordinate with major partners in the WTO • Anti-subsidy instrument not accessible to SMEs
  13. 13. Alain Delcourt Cerame-Unie President 1 December 2015 Thank you for your attention! NON-MARKET ECONOMY STATUS CHINA