Daily Management Review

EU Should Appeal to the WTO with the Steel Dumping Issue says China


EU Should Appeal to the WTO with the Steel Dumping Issue says China
Responding to reports that the European Commission (EC) was preparing to impose duties on imported Chinese steel, China's Ministry of Commerce said that claims it was dumping steel in Europe should be put to the World Trade Organization (WTO).
According to a statement released on the Ministry of Commerce’s website on Saturday, a Ministry of Commerce spokesman said that WTO members should fulfill their treaty obligations and stop using "surrogate countries" to pursue anti-dumping claims.
Following its investigation into alleged dumping by the two countries, the EC is set to impose provisional duties later this month of up to 16 percent on China, and of up to 26 percent on Russia.
While definitive duties, if imposed at the conclusion of the investigation would be done by August 12 and provisional measures are due to be announced by February 14. Such duties would typically apply for five years.
There were allegations that Russia and China were dumping the steel - selling it below market prices at home or below the cost of production - on the EU market and thereby damaging the local industry. These allegations were made by the Eurofer, the European steel association and the Commission's investigation followed after filing of this complaint from Eurofer.
The statement from the Chinese ministry states that in order "to create a fair, just and predictable international market environment," the Chinese government is willing to discuss "in good faith" with WTO members even as the global steel industry is facing over-capacity.
Earlier, China was urged to take measures by the European Union's top trade officials I order to curb overcapacity of its steel industry. the EU official had also warned it that it will open three new anti-dumping investigations this month on steel imports from China.
While welcoming Chinese plans to cut steel production such measures and announcements would need to be translated into concrete action, the European Commissioner for Trade Cecilia Malmstrom had said in a written letter to China's minister of commerce, Gao Hucheng.
A formal recommendation on whether the European Union should relax trade defenses against China as Beijing demands is expected to come in July and debates and public consultations are slated to begin soon. This development between the two regions could leave some impact on the debate say observers.
Price declines of certain products by up to a half resulting from a surge of Chinese exports last year of some 50 percent were matters of concern, Malmstrom said. She said that the situation had resulted in loss of thousands of EU jobs and tens of thousands more threatened.
"In the wake of a worrying trend, I urge you to take all appropriate measures to curb the steel overcapacity and other causes aggravating the situation," she said in the letter dated January 29, reported Reuters.
Three investigations in February into Chinese steel dumping, selling at excessively cheap or below cost price were set to be opened by the Commission, she had said. EU steel prices have hit a 12-year low.
Despite strong demand in its core markets as excess capacity in China depressed prices, 2015 had been a very difficult year for the steel and mining industries said ArcelorMittal, the world's largest steelmaker.
(Source:www.reuters.com & www.cnbc.com)