EU's Tariff on Chinese Goods Contrary To WTO Regulations: China
Dec. 25, 09 (Hamsayeh.Net) - Oil and gas deficient European Union is quickly entering a trade war with the Asian Dragon- China- over trade issues. EU blamed China for dumping its manufactured goods into European markets and introduced a ban on certain products from China about three years ago.
Beijing then recently placed its own tariff on European steel products including nails and bolts in a tit-for-tat measure against the EU’s protectionist policies, a day after it extended the ban on Chinese products. China expressing ‘strong dissatisfaction’ with the EU’s decision said it would take the matter to the World Trade Organization. ‘The Chinese government ... will appeal to the WTO dispute settlement mechanism and take measures accordingly to seriously protect the legitimate interests of the Chinese industry,’ ministry spokesman Yao Jian said.
The EU Commission cited Chinese ‘dumping’ of their products particularly footwear as the reason behind the decision. It said the tariff would give European firms the necessary protection to adjust and be competitive in global markets. ‘The removal of measures at this stage would lead to increased dumping and injury, and potentially halt the adjustment process of an industry which employs over 260,000 workers in the EU,’ the European Commission said in a statement. EU sets 16.5 and 10 percent duties on shoes imported from China and Vietnam, respectively.
In return China imposed a 24.6 percent duty on certain steel products from Europe in what some see as a looming trade war in progress. Most EU firms active in China also criticized the decision when said Europe’s unclear trade policies will lead to damages in excess of one billion euros each year for European footwear business.
Based on the latest figures nearly 30 percent of European shoes are imported from China and Vietnam, while exports of steel products to China could be considered as negligible.
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