WTO Condemns EU'S Anti-Dumping Actions Against Footwear In China

According to the financial times, the European Union has been condemned by the World Trade Organization (WTO) for its tariffs on imported goods which are regarded as unfair pricing. From footwear to glazed tiles, the attitude of WTO has a potential impact on many products.

This is a notable victory for China. In an initial report, an expert group of WTO ruled that the EU violated the global trade rules by resorting to the so-called "anti-dumping" measures and levying national tariffs on imported products.

The case is another example of a trend in international trade diplomacy, that is, the WTO member governments seek to circumvent anti-dumping measures and other emergency import barriers adopted by their trading partners by lodge complaints in WTO.

The case involves screws and bolts imported from China, which face 85% additional tariffs when entering the European Union, on the ground that Brussels believes they are dumping in Europe at below market prices.

But WTO, the global trade watchdog group, ruled that additional tariffs should not apply to all Chinese exporters, even in terms of trade, which is regarded as a "non market economy" in Europe.

The WTO panel's position is not to reject anti-dumping duties on bolts or any other product categories.

But it seeks to ensure that such tariffs are specific to specific companies, not to all potential exporters.

"This will represent a comprehensive change in the way we use now, that is to say that all exporters are regarded as a whole, with few exceptions," said Edwin Vermost, a trade lawyer in Brussels.

"This is a matter of principle for China."

The report means that since China joined the WTO 8 years ago, China's first complaint against the European Union is expected to succeed.

"The amount involved in this case is not huge, but it will have a shock wave on other anti-dumping cases," a person who listened to the report said.

The preliminary verdict, if expected, to be confirmed next month and waiting for appeal will force the European Union to retrial its anti-dumping duties against other non market economies, such as Vietnam and Albania.

At present, the EU has imposed additional tariffs on bicycles, textiles and footwear in China. There are also rumors in the trade law circle that the EU is considering new tariffs on certain high-tech products.

In recent years, governments have been more willing to challenge WTO anti-dumping laws.

There are many appeals seeking to stop the United States from adopting the controversial "zeroing" method, which is to exclude data that is unfavorable to them when calculating anti-dumping duties.