Imposition of antidumping measures
The European Commission announced on Tuesday that it will take the matter to the World Trade Organization over China’s provisional antidumping duties on brandy imports from the European Union. The commission said the measures lack a solid basis and it is ready to defend EU industry against the misuse of trade defense tools. EU Trade spokesperson Olof Gill conveyed the message in a post on the social network X, noting the challenge to China’s decision at the WTO. In a later statement, the commission said it would also identify and assess all options to offer appropriate support to EU producers facing the impact of this action by the Chinese government.
“We have instruments to address adverse effects for EU producers in market disruptions or the threat of disruption,” the executive body added. It stressed that it will stand firmly with EU producers, the industry, and the aim of open and fair trade plus equal conditions on a global basis.
The European Economy Commissioner Paolo Gentiloni defended from Luxembourg that the serious investigation into Chinese electric vehicles has yielded decisions that are appropriate and proportional. “I do not think there is any reason to react to this proportionate decision with retaliations,” the Italian said, noting that Brussels is not anxious about the matter and that it acts in a reasonable manner.
Imposition of antidumping measures
The Ministry of Commerce of China announced on the same Tuesday the provisional antidumping measures on EU brandy imports, set to take effect this Friday. Importers of the liquor will have to place security deposits with Chinese customs starting October 11. China had stated in late August that provisional antidumping duties would not be imposed on EU brandy, despite finding that European producers sold the liquor in China with dumping margins ranging from 30.6% to 39%.
The investigation, launched on January 5 of this year, concluded that these dumping practices pose a significant risk to China’s local brandy industry. China has also launched other antidumping probes into dairy products and pork from the EU, a move seen by observers as a response to trade frictions with the bloc. Last Friday, the Commission announced it would proceed with duties on Chinese electric vehicles after a vote by member states in which no majority voted against or in favor of the measures.
After five votes against (including Germany), ten in favor, and twelve abstentions (including Spain), the EU executive concluded that the proposal to impose definitive antidumping duties on electric vehicle imports from China had the necessary support. Depending on the level of subsidies reported by Beijing, the Commission recommended duties of 7.4% on BYD, 20% on Geely, and 38.1% on SAIC. Western brands that produce in China, such as Tesla, Dacia, or BMW, would face a 21% tariff.