The EU today initiated proceedings in the World Trade Organization (WTO) against the People’s Republic of China over its discriminatory trade practices against Lithuania, which also affect other exports from the EU single market. appear to constitute unlawful discrimination under WTO rules, harming exporters in both Lithuania and elsewhere in the EU, as well as targeting Lithuanian products exported from other EU countries. The EU has launched a dispute settlement procedure against China. The WTO consultations launched today are the first step in this process.
The Executive Vice-President of the Commission and Trade Commissioner, Valdis Dobrovskis, stated: “The initiation of proceedings in the WTO is not a step we take lightly. However, after repeated failed attempts to resolve the issue bilaterally, we see no alternative but to seek China’s dispute settlement within the WTO. The EU is determined to act with unity and speed against measures that violate WTO rules, which threaten the integrity of our single market. At the same time, we are continuing our diplomatic efforts to de-escalate the situation. “
In recent weeks, the European Commission has gathered evidence of various types of Chinese restrictions. These include evidence of a refusal of customs clearance of Lithuanian goods through customs, of cases of rejection of import applications from Lithuania and of cases of pressure on EU companies based in other EU Member States to remove Lithuanian inputs from their supply chains export to China.
To deal with such cases in the future, the Commission is strengthening its toolkit of autonomous measures. Last month, the Commission adopted a proposal for an anti-coercion measure that would give the EU more leeway in the event of financial coercion. This proposal is being considered by the European Parliament and the Council of the EU.
Record
From December 2021, without informing the EU or the Lithuanian authorities, China began to severely restrict or de facto restrict imports and exports from Lithuania, as well as related imports and exports. Lithuania. The Commission has repeatedly raised the issue with the Chinese authorities.
Next steps
The first step in the WTO dispute settlement process is the “request for consultations”, in which the EU formally asks China for more information on the measures it is implementing, in order to find a satisfactory solution. If these consultations do not lead to a positive outcome within 60 days, the EU may request the establishment of a task force to rule on the matter.
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