China threatens EU with WTO suit on its use of surrogate countries

The Chinese government is pissed. While the EU changed its antidumping methodology so that the use of surrogate third-party countries to determine costs and exporters’ prices for “non market countries (NME’s)”, it changed the rules to accomplish the same thing.

The EU introduced the concept and standard of “significant market distortions”. When confirming the situation of “significant market distortions”, the EU can abandon the exporters’ prices or costs and determine the existence of dumping based on the prices of a third country or international prices.

China believes the new methodology is against the WTO rules.

A MOFCOM spokesman pointed out that the WTO rules do not include the concept of “significant market distortions” and the rule of social and environmental dumping.

“The EU continues to use the “surrogate country” approach regardless of the WTO rules and decides the existence of “significant market distortions” of other countries by its own standards. This will weaken the authority of the WTO’s anti-dumping legal system,” the government spokesman said.

The spokesman stressed that as an important member of the WTO, the EU should respect the international rules, and only when the authority of multilateral trade system is safeguarded, it can be beneficial to the common interests of all countries. China urged the EU to strictly stick to the WTO rules, and comprehensively fulfill the international treaties and obligations with goodwill. China reserves its relevant rights under the WTO disputes settlement mechanism, and will protect our legitimate interests with necessary methods.

 

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