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Euratex highlights need to tackle trade barriers in China
Jan '17
The European apparel and textile confederation, Euratex, has highlighted the need for European Commission to tackle trade barriers in China and to address sector-specific topics, such as the overcapacities in the man-made fibres and yarns production. Euratex has reiterated that China does not meet the five criteria required to qualify as a market economy.
Euratex has welcomed the reflection process carried out by the European Commission over the last months to address the needs of the European industry and to tackle unfair trade practices. It has released its position paper on the Commission’s proposal to change anti-dumping and anti-subsidy legislation.
Further to its letter to European Commissioner for Trade Cecilia Malmström in January 2016, Euratex has reiterated that China does not meet the 5 criteria required to qualify as a market economy, in its position paper.
However, Euratex adds that it is aware that the Commission has put efforts to tackle overcapacities and to strive for preservation of European jobs by proposing to change the anti-dumping and anti-subsidy legislation. 
The European textile and clothing industry is currently struggling for competitiveness by continuous innovation and through the development of front-runner specialities. But, the industry needs fair trade in order to grow and create jobs. “We thus welcome the improvement of the anti-subsidy proceedings allowing to take into account the new subsidies in the course of an investigation. Euratex is also looking forward for the Council and Parliament’s approval of the withdrawal of the Lesser Duty Rule.”
The position paper, however, adds that the Commission’s proposal to change the AD-AS legislation by creating a new methodology for the calculation of the anti-dumping and introducing the concept of ‘significant distortion’ may open a lot of uncertainty for the European companies.
Drawing attention on the necessity to focus on sectoral needs, the paper says, “There are a number of questions revolving around the WTO compatibility, the drafting of the reports, the burden of proof, the management of the transition period, the timetable for adoption of this proposal and the subsequent reaction of China. Euratex joins its voice to that of the European business community to urge the Commission to strongly act and clarify these points.” 
Euratex has also highlighted the necessity to address sectoral problems through dedicated initiatives. “Tackling barriers to trade in China, protecting IPR, ensuring stability of raw material prices and addressing overcapacities remain our priorities,” it says. Euratex has asked DG Trade for setting up a specific task force on overcapacities in man-made fibres and yarns. (RKS)

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