Czech Business Today

The Consultative Commission on Industrial Changes (CCMI) prepared recently two important opinions of the European Economic and Social Committee (EESC) on Europe’s industry exigency of protection against unfair competition practices. In the first EESC Opinion (CCMI/146) “Market economy status for China” EESC warns against granting China the market economy status (MES) and calls on the European institutions to promote fair international competition and actively defend European jobs and European values with efficient trade defence instruments (TDIs).

The EESC points to the disastrous impact a possible granting of the MES to China would have on Europe’s industry and consequently on Europe’s labour market. The EESC insists on China’s fulfillment of the ve EU criteria for achieving the MES. Industries which would particularly be affected are aluminium, bicycles, ceramics, glass, motor vehicle parts, paper and steel. The EESC advises the Commission to use a non-standard methodology in anti-dumping and anti-subsidy investigations into Chinese imports under the China WTO Accession Protocol. Committee also calls for a simplified approach for those sectors where SME participation is relevant in order to allow them to participate in antidumping les. In the second EESC Opinion (CCMI/146) on “Steel: Preserving sustainable jobs and growth in Europe”, the EESC regards the steel industry as the basis of Europe ́s industry and considers the steel sector as one of the high-risk sectors. The EESC calls on the Commission to immediately address the unfair trade practices of exporting countries, in particular China, by enhancing the effectiveness and efficiency of trade defence instruments, including abolishing the “lesser duty rule”, registering imports prior to the adoption of provisional measures and retroactively applying definitive antidumping and/or countervailing duties three months before the adoption of provisional measures under the Basic Regulation.

Additionally the EESC reminds of the need to balance the commitment on climate change with the need to maintain the competitiveness of Europe’s industry and suggest giving free allowances to the most competitive facilities in order to encourage other facilities to improve their performance. European industry should be compensated for any indirect costs resulting from ETS. To ensure competitiveness of Europe’s steel industry it is essential boosting investment in European steel industry including modernising plants and equipment. Research and development of new and better products and more efficient processes must be a guiding principle. The voluntary sustainability schemes developed by the industry should be taken into account and properly rewarded in public procurement regulations as the best way to promote the sustainability approach across the entire EU market. CCMI looks at industrial challenges across a wide spectrum of sectors and combines over fifty years’ experience with consultative dialogue. Both opinions were adopted at the EESC plenary session on 14th July 2016.

Vladimir Novotný
Member of the EESC, Group I – Employers