EURACTIV.com with Reuters Est. 3min 11-04-2013 Karel De Gucht March 2012_picnik.jpg Euractiv is part of the Trust Project >>> Languages: FrançaisPrint Email Facebook X LinkedIn WhatsApp Telegram European Union trade chief Karel De Gucht asked for broad new trade powers on Wednesday (10 April) to make it easier to launch anti-dumping cases, particularly against China. Although the proposed rules – so-called Trade Defence Instruments – do not mention China by name, EU officials said they were designed to give the EU more leverage against the country and to ease companies' fears of retaliation in cases involving the powerful Asian economy. "It would be naive to say we've not been inspired in our thinking by our experience of dealing with investigations which are in China. The bulk of our cases, 80% or something, concern imports from China," an EU official said. The proposal to demand companies to hand over data will allow regulators more freedom to start a trade investigation on their own initiative, known as "ex officio", without needing a complaint from affected industry. Asked whether the proposed new rule to compel companies to provide data supporting trade cases would give them enough cover to cooperate in a telecoms case (see background), De Gucht told Reuters: "The fact that you would make it a normal procedure would certainly go further than is currently the case." The trade instruments, last updated in 1995, must be brought into line with global supply chains of the 21st century where increased tariffs harm hard-pressed retailers and consumers the most, said MEP Robert Sturdy, vice-president of the European Parliament's International Trade committee and European Conservatives and Reformists group trade spokesman. Going solo The proposal, which must be approved by EU governments and the European Parliament before becoming law, would strengthen the Commission's ability to scrutinise trade issues without needing businesses to come forward. It would also bring trade defence powers closer to the Commission's robust antitrust unit, one of the most powerful enforcers globally, due in large part to its ability to force companies under investigation to hand over data within a fixed time limit. But Brussels trade lawyers were sceptical of the proposal's abilities to shield companies from revenge. "Everybody is going to guess that even before the initiation [of a case], the local industry to some extent participated and cooperated … so what retaliation are you preventing? If you have a telecoms case with only three operators, then it's easy to retaliate against everybody," a Brussels trade lawyer said. The proposal would also remove a limit on the size of duties that could be placed on countries found to distort access to their raw materials like rare earth minerals, which could result in significantly higher duties for countries like China. China has come under fire for restricting access to its rare earth minerals, which are crucial for the defence, electronics and renewable-energy industries, and are also used in smart phones, disk drives and wind turbines. Last year, the United States, the European Union, and Japan launched a WTO complaint against China on this issue. Read more with Euractiv Gazprom, Shell ink Arctic cooperation dealRussia’s export monopoly Gazprom and the Anglo-Dutch energy giant Royal Dutch Shell have signed a tentative deal to develop hydrocarbons in the Russian Arctic, Russian and Dutch media reported. Subscribe now to our newsletter EU Elections Decoded Email Address * Politics Newsletters Positions"Europe's gateway is open to all trading partners, but we need a solid drawbridge against dumping products that can be raised in an emergency", said the EPP Group Spokesman on International Trade, Daniel Caspary. "The EU needs to have sufficient leverage against imports at dumping prices, without the European Union abandoning its aim of free trade." "The trade defence instruments need to be transparent, both for the European economy and for our trading partners. Free world trade must continue to be Europe's priority. But if we encounter unfair competition due to dumping imports or subsidies, the EU needs to be able to defend itself and protect its domestic industry." Markus J. Beyrer, director general of BusinessEurope said: “The modernisation of trade defence instruments must serve European industrial interests through improved rules to tackle unfair trade and subsidies as well as circumvention. European Union trade defence instruments already provide for higher standards than those required by WTO Law. BUSINESSEUROPE will oppose any attempt to weaken the instruments’ effectiveness”. “Intended to help domestic manufacturers, antidumping duties cause considerable damage to EU importers. To improve the system, it is essential to consider traders’ need properly”, said Ralph Kamphöner, EuroCommerce director of international trade and wholesale holesale. “The proposals are a moderate package that will please no economic operator entirely. But, with some amendments, it could well pave the way for a viable compromise to be agreed with the Parliament and the member states”, he added. Changes proposed to how the EU responds to products being 'dumped' on its markets are long overdue, said MEP Robert Sturdy, Vice-President of the European Parliament's International Trade committee and European Conservatives and Reformists group trade spokesman. "Trade Defence Instruments are necessary to ensure we all compete fairly. However, they must be more transparent and more considerate of the overall interest of European consumers, retailers and manufacturers. Too often, EU trade policy has focused on protectionism, which has only harmed those companies that have embraced global supply chains, and their customers, through higher costs. "Europe needs a trade defence policy that is geared towards keeping our markets open. It is the only way to make Europe work again." The European Chemical Industry Council (Cefic) said it is an ardent supporter of free trade, the European chemicals industry supports the modernization of EU trade defence instruments (TDI). “We are concerned, however, that the balance of the EU TDI system will be weakened at the expense of EU manufacturers by the Commission proposals announced today (Wednesday). We insist that TDI modernisation should not solely be geared towards more flexibility for importers, but first and foremost safeguard the ability of industry to produce jobs and growth in the European Union,” Cefic said in a statement. BackgroundThe Commission is investigating claims by the German solar panels manufacturers that China had unfairly granted state loans to EU solar panels imports worth some €21 billion. The EU executive is also investigating alleged subsidies to Huawei and ZTE – emanating from export credits given by Chinese banks – which the EU executive believes offer the Chinese companies preferential terms for investing into foreign markets. Trade Commissioner Karel De Gucht has threatened to open a formal investigation, carrying an implicit threat to slap tariffs on the Chinese companies. The case is unusual because no European company has initiated a complaint against either company, which is the usual origin of such probes.
