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Over a Dozen Senators Urge EU Commission Not To Grant Market Economy Status to China

Eighteen senators led by Jeff Sessions, R-Ala., and Sherrod Brown, D-Ohio, urged the EU Trade Commission to maintain China’s non-market economy status in antidumping duty cases until it becomes a true market economy, citing unfair state lending to nine state-owned steel producers and “rampant violation” of intellectual property rights, among other things, in a letter to EU Trade Commissioner Cecilia Malmstrom. The senators said that China claims that its World Trade Organization Accession Protocol requires countries to treat it as a market economy by the end of this year, based on the country’s prices or costs, but the protocol actually allows WTO members to employ an alternate antidumping methodology if investigated producers cannot prove the existence of market economy conditions.

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“China has not complied with many provisions of its Accession Protocol, including those related to state-owned enterprises operating under commercial considerations,” the letter says. “It has failed to keep promises to reduce steel overcapacity, and it maintains policies and enforces laws in ways that discriminate against foreign companies operating on Chinese soil.” In March, Senate Finance Ranking Member Ron Wyden, D-Ore., wrote a similar letter to Malmstrom (see 1603110047), and U.S. manufacturers formed a coalition to advocate against granting China market economy status in AD cases (see 1603160033). Rep. Rosa DeLauro, D-Conn., in April (see 1604150048) and Sen. Al Franken, D-Minn., in May (see 1605100011) introduced bicameral legislation to give Congress the authority to approve or disapprove Commerce designations of China as a market economy.

Email ITTNews@warren-news.com for a copy of the letter.