EU Commission Files WTO Complaint Against China Over Brandy Tariff Dispute

Brussels (Eurotoday) – The EU has filed a World Trade Organization case against Chinese tariffs on the bloc’s exports of brandy in the latest manoeuvre in an increasingly tight trade dispute.

Today on 25 Nov 2024 the European Commission has formally requested consultations at the World Trade Organization (WTO) over the provisional anti-dumping steps set by China on imports of EU brandy. 

How does the EU view China’s anti-dumping measures on brandy?

In his remarks, Valdis Dombrovskis, Executive Vice-President and Commissioner for Trade said: “The EU takes very seriously any unfair or questionable use of trade defence instruments against any sector of our economy. By requesting consultations with China over its provisional anti-dumping measures on EU brandy, the Commission is following through on its commitment to protect our industry from unfounded accusations and misuse of trade defence measures.”

What are the EU’s concerns regarding China’s trade defence actions?

According to the EU Commission, this action mirrors the EU’s firmly held belief that China’s provisional estimates on EU brandy are not in line with WTO regulations. China has not proven that there is any threat of harm to its brandy industry, nor that there is a causal connection between the alleged threat of injury and imports of brandy from the EU. Moreover, China prompted the case based on preliminary evidence, contrary to the standards of WTO law.

Why does the EU believe China’s brandy tariffs violate WTO rules?

By voicing its contention with China’s WTO-incompatible efforts already at the provisional stage, the EU is making strong early efforts to protect the interests of its industry and economy.

The EU Commission has followed this examination very closely since its initiation and intervened on a number of occasions to voice its objections to the questionable nature of China’s allegations and subsequent actions. The Commission stated that this request is the first stage in starting WTO dispute settlement procedures. China now has 10 days to answer the EU request, to find a mutually suitable format and date for the consultations. If no satisfactory solution is uncovered, a WTO panel could be requested to decide on the case.