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.

Alain Delcourt
Cerame-Unie President
1 December 2015
NON-MARKET ECONOMY STATUS CHINA

Overview
•Key facts
•Production trends by ceramic sector
•Trade overview
•Market economy status of China

2. Production trends by ceramic sector
Source: Eurostat 2015
BILLIONEUROS

3. Trade overview
8.87
4.63
4.23
BILLIONEUROS
Ceramic exports:
Source: Eurostat 2015, Cerame-Unie data

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

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.

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

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

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

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

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

Alain Delcourt
Cerame-Unie President
1 December 2015
Thank you for your attention!
NON-MARKET ECONOMY STATUS CHINA

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The document summarizes a presentation given at the Ceramic Days Construction Conference on the 26th of November 2013 in Brussels, Belgium. The presentation discussed the development of a Product Category Rule (PCR) for clay construction products to standardize environmental product declarations (EPDs) across Europe. Key points included an overview of life cycle assessment (LCA) and EPDs, the framework developed by the European Committee for Standardization (CEN) for sustainability assessment of construction works, and the objectives, scope, methodology and requirements defined in the PCR for clay products to allow consistent EPDs to be produced. The PCR is intended to facilitate environmental evaluations and comparisons of clay construction materials at both national and European levels.

"CET Product Category Rules for ceramic tiles" | Victoria Zaera

Cerame-Unie

"Building the Single Market for Green Products" | Michele Galatola

Cerame-Unie

"Environmental performance & European standardization" | Goncalo Ascensao

Cerame-Unie

"Environmental performance tools: How ceramic PCRs contribute to a better env...

Cerame-Unie

"International trade principles: how to ensure better enforcement" | Jacques ...

Cerame-Unie

"Making the circular economy a reality" | Dr Michelle Wyart-Remy | EPCF 2014

Cerame-Unie

"Climate & energy policies: post 2020 EU ETS" | Dr Laura Cohen | EPCF 2014

Cerame-Unie

"Trade & competitiveness of EU ceramic industry" | Jose Luis Lanuza | EPCF 2014

Cerame-Unie

"Resource efficiency & sustainable construction" | Dr Heimo Scheuch | EPCF 2014

Cerame-Unie

Dr. Heimo Scheuch discussed resource efficiency and sustainable construction at the European Parliament Ceramics Forum. He argued that resource efficiency is not just about using less resources, but using them better. Specifically, the ceramics industry has made significant improvements in longevity of products, reuse and recycling possibilities, and resource-efficient product innovation. However, a one-size-fits-all approach to measuring resource efficiency is insufficient, and sector-specific solutions that consider lifecycle assessments and availability of raw materials are needed.

European ceramic industry: When tradition builds a future

Cerame-Unie

European Ceramic Industry Roadmap to 2050

Cerame-Unie

European Ceramic Industry Manifesto 2014-2019 (Espanol)

Cerame-Unie

El documento presenta las recomendaciones de la Asociación Europea de Fabricantes de Cerámica (Cerame-Unie) para la próxima legislatura del Parlamento Europeo. Propone medidas para promover la competitividad industrial en Europa en áreas como el cambio climático, la energía, el comercio y el medio ambiente, así como para facilitar la financiación de la investigación y el desarrollo. El objetivo final es crear un marco que favorezca el empleo y el crecimiento en la industria cerámica europea.

European ceramic industry: about Cerame-Unie & our Manifesto

Cerame-Unie

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