EU Challenges China's Anti-Dumping Measures on Brandy at WTO

The European Commission has initiated formal proceedings at the World Trade Organization (WTO) to challenge the provisional anti-dumping measures imposed by China on European Union brandy imports. In a statement issued on Monday, the EU argued that these measures violate international trade rules and unfairly target the European industry.

Executive Vice President of the Commission and Trade Commissioner Valdis Dombrovskis emphasized that the EU is committed to defending its economic sectors against what it perceives as the misuse of trade defense tools. Dombrovskis noted that the request for consultations reflects the Commission's determination to protect European producers from what it views as unfounded accusations.

The dispute focuses on measures enacted by Chinese authorities on November 15, requiring importers of European brandy to deposit anti-dumping margins ranging from 30.6% to 39%. Beijing justifies this decision by alleging that European producers have sold brandy at unfairly low prices, harming the domestic industry and posing a threat to its growth. However, Brussels contends that the evidence underpinning these measures is insufficient and fails to demonstrate a direct link between European imports and the alleged harm.

China's investigation began in January of this year, primarily targeting French producers, who are the leading exporters of brandy to the Chinese market. Preliminary findings presented in August suggested significant dumping margins, though no provisional measures were implemented at that time. This changed with the introduction of mandatory deposits in November.

Since the investigation's launch, the European Commission has closely monitored the case and repeatedly expressed its opposition to China's approach. According to the Commission, the case contravenes international rules, and it aims to resolve the matter through the WTO's established dispute resolution mechanisms. The request for consultations submitted to the Geneva-based organization marks the first step in a process that could escalate to a dispute panel if no agreement is reached.

China now has ten days to respond to the EU's request and set a date for consultations. If no resolution is achieved, the WTO may be asked to review the case and issue a binding decision. Meanwhile, the European Commission has pledged to continue taking steps to safeguard the interests of affected EU producers.