The European Steel Association (EUROFER) has issued a statement welcoming the European Parliament’s decision to reject the granting of market economy status (MES) to China, while it has asked the European Commission to consider more seriously the wider implications of MES on the steel industry, as well as to motivate member states to overcome the blockage in the council regarding the modernization of Europe’s trade defense instruments (TDIs).
EUROFER director general Axel Eggert stated that a significant majority of members of the parliament do not believe it is the right time to grant China MES and added that China is not a market economy and thus cannot be treated as such for the purpose of antidumping investigations.
According to EUROFER, China is, by some margin, the largest dumper of steel on to the EU market. Of the 37 antidumping measures currently in force on steel, 16 involve China in some way. Were MES to be granted, the EU’s trade defense measures would be rendered ineffective, with no other enforcement tool available. EUROFER also stated that the European Parliament’s decision also urges the council to agree on the modernization of the EU’s TDIs. The European Commission’s proposal for the modernization of the EU’s TDIs has been at an impasse in the council since 2013 as member states such as the UK and the Netherlands continue to block the lifting of the lesser duty rule.