backAs reported in an earlier blog post, the European Union (EU) is currently discussing the economic and legal implications resulting from the expiry on 11 December 2016 of certain provisions in Chinas Protocol of Accession to the World Trade Organization (WTO) relating to its status as a Non-Market Economy (NME) in anti-dumping investigations.
The European Commission, the executive arm of the EU, is said to be preparing a legislative proposal to be tabled by the end of the year that will ensure an equivalent level of protection for European industry in light of whatever changes to Chinas NME status.
It is now reported, however, that a key legislator in the European Parliament considers there may not be sufficient time for the EU to pass the necessary legislation in time. In a 4 October letter, the Chair of the Committee on International Trade of the European Parliament, Bernd Lange, is said to request the EU Commissioner for Trade to confirm whether the European Commission will put forward the necessary proposal and, if this is the intention, to do so as soon as possible.
Any change to existing EU law in relation to the treatment of China as a NME in anti-dumping investigations requires the consent of both the European Parliament and the Council of the EU, the two legislative bodies of the EU. This co-legislative mechanism, called the ordinary legislative procedure, may take time to run its course as it can involve several stages, not all assigned strict time limits. On a divisive political and legal topic such as China NME status, it would not be surprising if several back and forth exchanges between the European Parliament and the Council are required before a compromise can be reached.