EU to launch WTO challenge against China’s brandy duties

Kathmandu: The European Union said Tuesday it will launch a challenge at the World Trade Organization against China’s move to impose anti-dumping measures on brandy imported from the bloc.

Beijing’s move appeared to be a tit-for-tat measure against Brussels after the EU slapped hefty additional import tariffs on Chinese-made electric vehicles. ‘The European Commission will challenge, at the WTO, the announced imposition of provisional antidumping measures by China on imports of brandy from the EU,’ the commission’s trade spokesperson Olof Gill said in a statement.

‘We believe that these measures are unfounded, and we are determined to defend EU industry against the abuse of trade defence instruments,’ Gill added. The Chinese commerce ministry released a list detailing the rates each company would expect to pay, ranging from 30.6 percent for cognac house Martell to 39 percent for Jas Hennessy and 38.1 percent for Remy Martin.

EU countries last week gave a definitive green light to additional tariffs of up to 35.3 percent on electric cars made in China despite strong German opposition. EU economy chief Paolo Gentiloni defended the EU’s actions as “reasonable” and said the bloc was “never worried” when asked about fears of retaliation.

‘We had a serious investigation,’ Gentiloni told reporters in Luxembourg, referring to the anti-subsidy probe launched last year into Chinese electric cars. The investigation concluded earlier this year that Beijing’s state aid to auto manufacturers was unfair and undercut European carmakers.

‘We took appropriate and very proportional decisions, and I don’t think that there is any reason to react to these proportionate decisions with retaliations,’ he said.

RSS/AFP