EU challenges China at WTO over new brandy import tariffs
The European Commission has filed a case against China with the World Trade Organization (WTO) over temporary anti-dumping measures imposed by Beijing on brandy imports from the EU. China implemented these measures in retaliation for EU tariffs on Chinese-produced electric vehicles.
2:48 PM EST, November 25, 2024
China's decision has led to EU brandy importers needing to pay "security deposits to customs authorities," effectively additional customs fees. Beijing's actions are seen as primarily targeting France, which has urged Brussels to investigate Chinese electric cars.
The EU is not inclined to overlook China's measures. The European Commission announced that these actions violate WTO rules and has filed a complaint.
China has not demonstrated any threat of harm to their 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.
This highlights the EU's commitment to decisively protect the interests of its industry and economy.
China has little time to respond
The EC's request marks the first step in the WTO's dispute resolution process. China now has 10 days to respond. The aim is to agree on a mutually convenient format and date for consultations to address the dispute. The WTO functions as a mediator to help resolve conflicts. "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 among the 10 EU countries, including Poland, that in September voted to impose tariffs on Chinese-produced electric vehicles. The rationale behind these tariffs is Beijing's subsidies for electric car production. These tariffs 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.
