Electromechanical Chamber Of Commerce: EU Should Revoke Anti-dumping Measures Against Fasteners

- Nov 05, 2018-

Electromechanical Chamber of Commerce: EU should revoke anti-dumping measures against fasteners

EU anti-dumping against Chinese fasteners violates WTO rules

According to reports, the EU's anti-dumping case against China's carbon steel fasteners has entered its tenth year since its original investigation in 2007. Since the high anti-dumping duties imposed in 2009, it has entered its eighth year. In the original investigation, the investigation committee of the European Commission adopted the price of the product of the Indian automobile fastener enterprise as the substitute price and the unfair price comparison with the price of the ordinary fastener exported by China, and abused the procedural rules and substantive rules of the WTO anti-dumping. In violation of the regulations, a high anti-dumping duty was imposed, with an average tax rate of 77.5%, which caused the Chinese fastener industry to suffer long-term major losses.

The export value of China's fasteners to the EU fell from US$1.08 billion in 2008 to US$80 million in 2014, a 12-fold decline. Many companies have closed down or are in bankruptcy. At present, Chinese fastener companies have been forced to withdraw from the EU market.

Wang Guiqing introduced that in order to safeguard its legal rights, the Chinese fastener industry requested the Chinese Ministry of Commerce to appeal the anti-dumping measures against the EU fasteners to the WTO dispute mechanism in 2009. In the original panel of experts and appeal procedures of the WTO dispute mechanism, the European Commission was ruled to violate the WTO rules, forcing the European Commission to enforce the ruling of the Appellate Body and conduct a re-investigation. However, the European Commission has not fully implemented the WTO ruling. With the support of the Chinese government, our respondent company Ningbo Jinding Fastener Co., Ltd. and Changshu Fastener Factory carried out full evidence and strong defense, forcing the European Commission to partially correct the original average anti-dumping duty rate from 77.5%. Dropped to 54.1%. However, the European Commission did not completely correct the mistakes, so China was once again filed a lawsuit against the WTO dispute mechanism.

In the enforcement action, the panel again ruled that the EU violated regulations. After the EU appeal and China cross-appeal, through the 131-day appeal, the Appellate Body made a final appeal on January 18, 2016, Geneva, and ruled that the EU lost the case. The Appellate Body fully supported China's position and proposition, and once again ruled that the EU's anti-dumping measures against Chinese products to date have violated WTO rules.

Wang Guiqing said that from the July 31, 2009 to the WTO dispute mechanism prosecution, it took six and a half years that China, as the plaintiff in this case, completed the complete litigation and enforcement procedures of the WTO dispute case, fully reflecting the Chinese government's firm maintenance of industrial interests. Determination.

"According to the WTO dispute settlement rules, the EU must revoke anti-dumping measures in accordance with the ruling of the Appellate Body. If the EU does not enforce the ruling of the Appellate Body, the Chinese government can take further action." Wang Guiqing said.

At the meeting, the Chamber of Electromechanical Chamber of Commerce and the Fasteners Branch reaffirmed that the EU should conscientiously abide by the ruling made by the WTO Appellate Body, correct the mistakes, and revoke the current anti-dumping measures still being implemented against Chinese fastener products. If the EU does not revoke the measures, we will ask the Chinese government to take further action in accordance with the WTO rules.

Sino-European fastener industry has broad prospects for cooperation

Mr. Fu Donghui told reporters that China’s WTO v. EU fastener case is intended to require the EU to fulfill its WTO obligations and abide by WTO rules in order to restore a fair and reasonable trading environment.

In fact, Sino-European trade is complementary, and the Sino-European fastener trade is also complementary, and it can cooperate and win-win. According to reports, the EU market has huge demand for Chinese fasteners. The Chinese market also has huge demand for EU fasteners. The products of the two sides are very different and complementary.

According to China Customs statistics, from 2007 to 2014, the export value of fasteners originating in the EU to China increased from 285 million US dollars to 695 million US dollars. In 2014, the EU's export value to China was 2.44 times that of 2007. It is the rapid development of China's automobile market in recent years that has provided tremendous development prospects for the EU fastener industry. The EU industry has gained huge benefits.

"We believe that there is no fundamental conflict between the fastener industry in China and Europe. As long as we can eliminate extreme trade protectionism, the fastener industry in Central Europe has a broad prospect of cooperation and win-win." Wang Guiqing stressed.

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