non-market economy status of china | alain delcourt | epcf 2015
TRANSCRIPT
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Alain DelcourtCerame-Unie President
1 December 2015
NON-MARKET ECONOMY STATUS CHINA
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Overview
•Key facts
•Production trends by ceramic sector
• Trade overview
•Market economy status of China
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1. Key facts
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2. Production trends by ceramic sector
Source: Eurostat 2015
BIL
LIO
N E
UR
OS
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3. Trade overview8.87
4.63
4.23BIL
LIO
N E
UR
OS Ceramic exports:
Source: Eurostat 2015, Cerame-Unie data
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4. Market economy status of China
• China's WTO accession protocol Article 15
• MES applies to anti-dumping investigations
• Determines normal value (dumping margin)
• China fails on 4 out of 5 market economy criteria
• Only one subparagraph expires: Art. 15 a) ii
• EU to evaluate impact before MES is granted
• EU to coordinate with international partners
1 OUT OF 5 TECHNICAL CRITERIA MET
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4. Market economy status of China Example Chinese Product: calculation of dumping margins
Export price to EU: €100
Compared against a
“Normal Value” = a reference price
China a non-Market Economy
Normal value: €130Higher price, according to Third Country “Free
Market”
Calculation of dumping margin: 130 – 100 = 30
China has Market Economy Status
Normal value: €80Lower price, according to state-run Chinese market
Calculation of dumping margin: 80 – 100 = no dumping
DUMPING MEASURES POSSIBLE
DUMPING MEASURES NOT POSSIBLE
VS.
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4. Market economy status of China • MES to be assessed in the context of TTIP negotiations• Redirection of Chinese exports away from the US to EU market if EU grants MES to China
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4. Market economy status of China
• Effect on the ceramic industry if MES is granted prematurely
• Around 338,000 jobs would be exposed in our sector (Eurostat)
• Includes a number of micro enterprises not represented by CU
• Cerame-Unie’s membership represents 200,000 direct jobs
• 100,000 ceramic direct jobs are being defended by anti-dumping measures:
• Ceramic wall and floor tiles
• Ceramic tableware
• Only efficient anti-dumping tools can level the playing field
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4. Market economy status of China
Source: Eurostat 2015
• In force since Sept 2011
• Imports from China decreased by over 65%
• If AD measures were removed around
70,000 direct jobs are at risk
• Majority are SMEs
Impact of effective AD measures in the ceramic tiles sector 2011 - 2015
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4. Market economy status of China
In absence of AD measures in ceramic tableware sector 2004-2011
• Period: 2004 – 2011 (no AD measures in place)
• China’s market share increased from 20% to almost 70%
• Ceramic tableware sector lost over 33,000 direct jobs
• Around 25,000 direct job currently at risk if AD measuresare removed
Source: Eurostat 2015
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4. Market economy status of China
• Political decisions cannot ignore economic realities
• Rigorous & transparent impact assessment
• China to demonstrate first it fulfils market economy criteria
• Until then, the EU should not grant Market Economy Status
• Any unilateral EU action would be irreversible
• EU should coordinate with major partners in the WTO
• Anti-subsidy instrument not accessible to SMEs
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Alain DelcourtCerame-Unie President
1 December 2015
Thank you for your attention!
NON-MARKET ECONOMY STATUS CHINA