The EU must retain the power to take “timely, necessary and effective” action against anti-competitive practices as it shapes future trade arrangements with China, an ECR MEP insisted today.

China’s current Accession Protocol to the World Trade Organisation (WTO) expires in December and the EU has to decide whether to grant it so-called Market Economy Status or maintain the current position.

ECR international trade spokesman Emma McClarkin today laid out four criteria that must be met in any future arrangements, including being able to impose anti-dumping measures when necessary, but called on the European Parliament to delay voting on the issue until an impact assessment is completed.

Ms McClarkin said: “China’s contravention of trade rules has impacted hard on our industries in recent months, not least the steel industry. However, we need to ensure any steps we take have a solid legal basis – if we want China to play by the rules we have to do so ourselves and respect our WTO obligations.

“It is imperative that no decision be taken by the Parliament in the absence of a legal and economic impact assessment from the European Commission. Some 5,000 responses gave been received from industry and it is vital these are taken into account ahead of any decision being made.

“We must ensure that any proposal takes full account of the long term economic, social, industrial and strategic impact.”

Market Economy Status would see the price of China’s exports compared with those in its home market – instead of in other, higher priced countries as at present – when deciding whether it is operating in an anti-competitive manner.

Source: ercgroup.eu