EU Officials Seek More Clout to Deal with Trade Disputes
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European Union trade regulators are seeking new powers to compel companies to cooperate in anti-dumping investigations, a move which analysts say is aimed at strengthening the bloc’s ongoing disputes with China.
European Union trade regulators are seeking new powers to compel companies to cooperate in anti-dumping investigations, a move which analysts say is aimed at strengthening the bloc’s ongoing disputes with China.
The proposal, if approved by EU member states and the European parliament, would make it easier for the European Commission to demand companies provide market data and other sensitive information that is necessary to prove that some foreign products are sold at below cost in Europe, according to draft reports seen by Reuters.
The proposed rules, part of a broader effort to modernise the EU’s trade policies, also seek to address growing concern that European authorities are shying away from filing complaints against Chinese competitors because they fear retaliation action from Beijing.
“EU producers are often reluctant to lodge a complaint or may withdraw from an investigation and thus be prevented from exercising their rights under EU and World Trade Organisation law,” one of the EU papers said.
“A more offensive approach against threats of retaliation, fraudulent or structurally distortive trade practices will strengthen our system and contribute to keeping production and employment in the EU,” the document said.
The proposed rules would also redefine the way the EU decides whether to open new trade cases based on the region’s interest, a sticking point the last time reform was attempted in 2007.
People familiar with the matter told Reuters that the proposals by EU Trade Commissioner Karel de Gucht were designed to increase its leverage over China, as well as other countries involved in disputes. De Gucht has accused China of subsidising “nearly everything”.
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As a result, the draft would allow the EU to impose significantly higher punitive duties on more Chinese imports.
“It’s clearly trying to respond to a trend which is driven by China,” an EU diplomat said.
An EU delegation has been dispatched to China this week after Beijing requested a meeting in an attempt to forestall what it believed was imminent EU action, according to people familiar with the matter.
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Some EU trade lawyers believe the new rules could provide an effective shield for companies fearing retribution. But others question whether the Commission can force companies to comply without the threat of fines or other sanctions.
They also note that Beijing would ultimately know whether companies had assisted the Commission – regardless of promises of anonymity. “Whether or not the complaint is signed by Ericsson or Alcatel or Nokia Siemens, whatever information comes out in the investigation, the Chinese government will know it came from the companies,” one lawyer told the Financial Times.
