China Loses WTO Dispute To EU Over Market-Economy Status, May Be Slapped With High Anti-Dumping Tariffs
In a landmark development, China has lost a dispute to the European Union at the World Trade Organisation (WTO) for a market economy status, as the former allowed the dispute to lapse.
The development comes after four years of battle for the market-economy status by China. The designation would have put the country in a stronger position in respect of its commercial and trade partners.
A note by the WTO Secretariat said China allowed the dispute to lapse. "At the request of China, the panel suspended its work on 14 June 2019 (WT/DS516/13).
Since the panel has not been requested to resume its work, pursuant to Article 12.12 of the DSU, the authority for establishment of the panel lapsed as of 15 June 2020," read the Secretariat's note.
According to the EU, China subsidises its industries to a great extent, particularly steel and aluminum, making their sales prices in the international market unfair.
After the latest development, to protect their industries, the EU and the United States will be able to apply high anti-dumping tariffs on goods from China.
Similar issues have also been faced by India in terms of "dumping" of low-cost products by China. India has imposed anti-dumping duties on several occasions on several items.
Further, amid the ongoing border tussle, India may impose higher tariffs on products that are mostly imported from China.
(This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.)
As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.
Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.
We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.
Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.