EU, China co-operate on illegal trade[fr][de] 

• Counterfeiting and piracy: 

According to the EU Chamber of Commerce in China’s 2006 Business Confidence Survey, weak Intellectual Property Rights (IPR) protection is still regarded as one of the key challenges of doing business in China, with only 9% of respondents never having encountered IPR protection related problems in China and 67 stating that the present enforcement of IP laws and regulations in China does not act as an effective deterrent. 

This is a cross-sectoral problem which causes huge losses for sectors as varied as agro-chemicals, textiles, automotive and pharmaceuticals. 

The pilot scheme aims to deal with this problem by creating “smart and secure trade lanes” between China and the EU thanks to an increased number of controls throughout the entire supply chain, improved information flows, and new screening technologies and security standards. 

For now, the project will be limited to exchanges between the ports of Rotterdam (the Netherlands), Felixstowe (UK) and Shenzen (China) and will deal mainly with sea containers. But if it is successful it could be gradually expanded across the EU. 

• Product safety: 

According to the RAPEX report 2005 (Rapid Alert System for non-food consumer products) half of all notifications regarding unsafe products concerned goods originating from China. Action is therefore urgently needed to prevent dangerous products from entering the EU. The Commission is particularly targeting toys because 25% of RAPEX notifications concern toys – of which 85% come from China. 

The road map focuses on improving the safety of Chinese toys exported to the EU thanks to training and technical assistance, exchange of RAPEX information between EU and Chinese authorities and the establishment of tracing, feedback and follow up mechanisms for dangerous products. 

• Illegal food trade: 

Illegal exports of food to the EU from China escape all official controls and can therefore pose an animal- or public-health risk, as they escape all official health and quality checks. 

According to the Commission’s health and consumer protection spokesman Philip Tod, the EU’s Rapid Alert System was notified of six cases of illegal exports of poultry from China in 2006 – at a time when the bird-flu outbreak was at its height. 

Furthermore, in early September, NGOs discovered traces of illegal genetically modified rice from China in products found in Asian stores in Germany, France and the UK (see EurActiv 6 September 2006). 

The newly signed arrangement for the cooperation on joint prevention of illegal action in the import and export of food aims to prevent and deter such illegal activities by improving exchange of information whenever illegal export consignments are detected; conducting joint investigations, and; developing electronic certification to prevent false certification of food products. 

Taxation and Customs Commissioner Laszlo Kovacs said that combating the infringement of IPR is the main reason for establishing customs cooperation with China. “According to statistics, more than 50% of the seized fake products - including fake DVDs and other, but also fake foodstuffs, fake pharmaceuticals, which are threatening the safety, the health, even the lives of our citizens – are coming from China. So, we wanted to involve China in this joint struggle and they showed a great deal of partnership and we are very pleased with that,” he said. 

EU Health and Consumer Protection Commissioner Markos Kyprianou said: “Nearly half of the dangerous consumer products detected in the EU, especially toys, are imported from China. This has to change... The agreement we have signed today with the Chinese authorities is a significant step forward in ensuring consumer safety”. Enhanced co-operation should also foster progress in trade talks, he added. 

Chinese Customs Minister Mu Xinsheng noted that “the Chinese Government pays much attention to IPR protection… and has made good achievements in the fight against IPR infringements”. He expects that the pilot project for smart and secure trade lanes should strengthen the battle against smuggling, counterfeiting and terrorism. “Our expectation is that we could stop most of the counterfeit imports and exports from China’s territory” thanks to the agreement, he said. 

Marc-Antoine Jamet, President of the Anti-Conterfeiting Association Unifab, welcomed the launch of the pilot project as “an important instrument in the struggle against counterfeiting” because “customs are today the first line of defense against counterfeiting, piracy and terrorism”. “Freight forwarders, container companies, importers and port authorities are indeed the different links in the logistics chain which is manipulated by counterfeiters,” stated Unifab, recalling that China is the EU’s second trade partner and that more than 70% of seizures of counterfeit products in the EU originate in China.