EU challenges China's retaliatory brandy tariffs at WTO
The European Commission has taken a case against China to the World Trade Organization (WTO) concerning temporary anti-dumping measures imposed by Beijing on the import of brandy from the EU. China implemented these measures in response to EU tariffs on electric vehicles produced in China.
25 November 2024 10:52
China's decision has led to EU brandy importers having to pay "security deposits to customs authorities," which essentially means paying additional customs fees. Beijing's actions appear to primarily target France, a country that has pushed Brussels to investigate Chinese electric vehicles.
The EU has no intention of ignoring China's actions. The European Commission has announced that these actions are inconsistent with WTO rules and subsequently filed a complaint.
China has not demonstrated any threat of harm to its brandy industry nor established a causal link between the alleged threat and the import of brandy from the EU. Furthermore, the EC argues that China initiated the case based on insufficient evidence contrary to WTO standards.
The EU emphasizes that it is taking decisive action to protect the interests of its industry and economy.
China has limited time to respond
The EC's request marks the first step in the WTO's dispute settlement process. China now has 10 days to respond. The objective is to agree on a mutually convenient format and date for consultations to resolve the dispute. The WTO serves as a mediator in resolving the conflict. "Once a verdict has been announced [by WTO - ed. note], countries concentrate on complying with the rules, and perhaps later renegotiating them — rather than declaring war on each other," explains the organization regarding its mission.
The EU takes very seriously any unfair or questionable use of trade defence instruments against any sector of our economy. By requesting consultations with China over its provisional anti-dumping measures on EU brandy, the commission is following through on its commitment to protect our industry from unfounded accusations and misuse of trade defence measures, said Valdis Dombrovskis, EC Vice-President for Trade, on Monday.
France was one of the 10 EU countries, alongside Poland among others, that in September voted to impose tariffs on electric vehicles produced in China. The reason for these tariffs is Beijing's subsidization of electric car production. These duties are in addition to the standard EU import duty on cars, which is 10%.
China is also conducting anti-dumping investigations into the import of pork and dairy products from the EU.
