Today, the European Commission formally requested consultations at the World Trade Organization (WTO) regarding China’s provisional anti-dumping measures on imports of EU brandy. This step reflects the EU’s firm belief that China’s measures are not compliant with WTO rules.
China has not demonstrated any threat of injury to its brandy industry or proven a causal link between any alleged threat and imports of brandy from the EU. Furthermore, China initiated this case based on insufficient evidence, which contradicts the standards set by WTO law.
“The EU takes very seriously any unfair or questionable use of trade defence instruments against any sector of our economy. By requesting consultations with China over its provisional anti-dumping measures on EU brandy, the Commission is following through on its commitment to protect our industry from unfounded accusations and misuse of trade defence measures,” Valdis Dombrovskis, Executive Vice-President and Commissioner for Trade said.
By expressing its disagreement with these measures at such an early stage, the EU is actively taking steps to protect the interests of its industry and economy. The Commission has closely monitored this investigation since it began and has repeatedly intervened to express its objections to China’s questionable allegations and measures. This request marks the first step in initiating WTO dispute settlement procedures.
China now has 10 days to respond to the EU’s request to arrange consultations at a mutually convenient time. A WTO panel may be requested to adjudicate the case if no satisfactory resolution is reached.