EU Should Stop Using Surrogate Country Approach, China’s Commerce Ministry Says

Yicai

2017-05-13

(Yicai Global) May 13 -- The Chinese Ministry of Commerce urged the European Union to terminate the use of the ‘surrogate country’ approach for anti-dumping measures against China’s seamless steel pipes.

The European Commission made a final decision yesterday to impose anti-dumping duties ranging from 29 to 54.9 percent on China’s exports of seamless steel pipes.

The EU has worked to prevent the dumping of Chinese exports of stainless steel pipe fittings, medium and thick steel plates, hot-rolled coil and seamless steel pipes, and other steel products this year.

The European Commission has continued to use the ‘surrogate country’ approach, under which World Trade Organization members use production costs from a third country to calculate the value of products from countries on its ‘non-market economy’ list, which includes China. China has said the method is unfair and unreasonable and allows the EU to artificially decide high anti-dumping margins, damaging the interests of Chinese companies.

China urges the EU to comply with international treaty obligations under the WTO, end the use of the ‘surrogate country’ approach to enable the fair, impartial and non-discriminatory treatment of Chinese firms, and create a stable, predictable and just policy environment for China-EU cooperation, said Wang Hejun, director of China’s commerce ministry’s Trade Relief Investigation Bureau.

The weak global economic recovery and shrinking demand are the root causes of the difficulties the iron and steel industry are facing, Wang said. Countries should tackle the problems with win-win cooperation, said Wang. China is willing to strengthen exchanges and communication with the EU to properly solve the current problems facing the steel industry.

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