EU Trade Commission Karel de Gucht is seeking to update the EU's tools to combat unfair trade practices, which were developed before China emerged as a major exporter. Some Europeans pointed out that these regulations are too loose.
EU members hope that the new measures will be more powerful than the proposal of the European Commission. They want to make it easier for small businesses to counter countries that violate international trade regulations and export at below cost.
Members also want to lift a European regulation that limits punitive sanctions. According to this regulation, in order to correct the damage caused by illegally subsidizing imports, punitive sanctions are only absolutely necessary.
"The position of the European Parliament is much more radical," said Christofer Fjellner, a member of the European Commission who negotiated on the issue. "I know that this issue has been controversial, but many members have opposed the original proposal of the European Commission. He said after the parliament voted in Strasbourg.
Although the new rules do not mention China, most of the EU's trade disputes occur between Chinese companies.
Sino-European trade has doubled since 2003 to more than 1 billion euros ($1.3 billion) a day, but relations between the two sides are often in a state of tension. Of the 12 cases in which the European Commission’s last year imposed punitive tariffs, seven were related to China.
In drafting the new rules, Kared Gute is eager to not send out false signals, or to cause trade defenses to appear like protectionism and to undermine the delicate relationship with trading partners such as China and Argentina.
Officials believe that the European Commission's proposal is enough for the EU to fight against China and to alleviate concerns about retaliation in cases involving strong Asian trading partners.
“The advantage of EU trade defenses lies in the balance and appropriateness of the measures they adopt,†Kared Gute told the European Parliament. “In this modernization process, balance is still a key word.â€
The European Parliament, the European Commission and EU member states are expected to begin three-way negotiations next month to reach an agreement on the new rules later this year and before the end of the Karidegut term.
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