At the end of 2016, the WTO will have to decide on China’s economic status. If market economic status (MES) is granted then the EU will lose its ability to put trade barriers in place and in particular anti-dumping measures. On the 20 July implications of this were discussed by the College of Commissioners and the College intends to require China to proceed towards “making significant and verifiable cuts in industrial over-capacity based on a clear timeline of commitments and an independent monitoring mechanism.” In light of this prospect the EU will review its trade defense tools.
The College “agreed that EU Commission should ensure that Europe has trade defense instruments that can deal with the current realities – notably existing overcapacities – in the international trading environment, while respecting the EU’s international obligations in the WTO legal framework,” explained the EU Commission’s press statement following the meeting on recognizing China’s MES within the WTO.
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