Statement by H. E. Amb. Sun Zhenyu of China at the Trade Policy Review of the European Communities Monday,April 06,2009 Posted: 21:57 BJT(57 GMT)   From:wto    Article type:Original 6 April 2009 Thank you, Mr. Chairman. Mr. Chairman, we’d also like to warmly welcome the EC Delegation led by Peter Balas and Ambassador Guth and thank Peter for his opening statements. We thank the Secretariat for its diligent work in preparation for today’s meeting. Our appreciation also goes to the discussant Ambassador Grey for his insightful remarks. Mr. Chairman, the EC is one of the key Members of this organization and we appreciate very much the great contribution the EC has made to world trade. The EC’s commitment to multilateral trading system, especially during the difficult times of DDA talks, where the EC continued to provide leadership and facilitate the progress of the negotiations in many areas, has left a deep impression on us. The evolvement of the EC in both political and economic areas has built up a sound and robust foundation for the EC to strengthen its leadership in the world economy and to contribute to the recovery from the current crisis. The EURO has shown its potential to assume greater importance for the future world financial system. And the London G20 Summit has demonstrated that the EC is ready to devote more resources together with the rest of the world to stabilize the current world economy. Mr. Chairman, we are glad to learn from the Secretariat Report that the real GDP growth in the EC remained robust at 3% for the period under review, while the fiscal deficit declined to 0.9% in 2007 and well under control with an estimated 2% in 2008. Also for the period under review, the EC is the world’s leading exporter and second-largest importer of goods, remaining the world’s largest trader in services, and the largest recipient and supplier of FDI. Mr. Chairman, China and the EC enjoy very close economic ties. According to our statistics, bilateral trade reached 356.2 billion USD in 2007, while in 2008, the number grew further to 425.58 billion USD, with an increase of 19.5% despite the breakout of financial crisis in the second half of the year. Currently, the EC is China’s largest trading partner and exporting market. Mr. Chairman, China believes that one of the important principles to conduct SINO-EC trade and economic relations is to achieve mutual benefit for both sides. In the past few years, the momentum of SINO-EC trade relations remained sound and healthy. We look forward to the second SINO-EU High-level Economic and Trade Dialogue to be held very soon. Mr. Chairman, prior to this review meeting, China submitted written questions to the EC, with a view to having a better understanding of some economic and trade policies and measures by the EC and to addressing some of our concerns. Our trade concern is mainly focused on the following areas: Tariff structure; Customs procedures; Technical regulations; SPS measures; government procurement; Subsidies, especially in agriculture; and Investment barriers maintained by some EU Member States. China is pleased to receive EC’s written responses to these issues and will study them more closely after today’s session. Now I would like to highlight two major concerns. First, on TBT and SPS measures. Mr. Chairman, I have to say that the EC is making little progress in addressing its TBT and SPS measures which created substantial trade barriers for not only Chinese enterprises, but enterprises across the developing world. Ever since China’s first participation in the Trade Policy Review of the EC back in 2002, China has been requesting the EC to phase out some of its technical regulations or directives which brought unnecessary and excessive burden for manufacturers and importers. However, until this day, the situation is getting even worse. The EC has created more and more unnecessary constraints on trade. For instance, introduction of risk management system and the residue standard are sometimes not purely based on scientific analysis. The standards on chemicals in “REACH” are also of great concern to China. Second, on trade remedy measures. It seems that while the EC takes the lead in the DDA negotiations and on many important issues of this organization, it is also a major “player” in the application of trade remedy measures including anti-dumping. According to the statistics as shown in the Secretariat report, for the period under review, 36 new antidumping cases were initiated and just in the first half of 2008, 131 definitive anti-dumping measures were in place, while 45 were against Chinese exports. As China has also been the most frequent target of anti-dumping investigations, the negative impact caused by them on the bilateral trade is evident. China would like to urge the EC to refrain from abusing trade remedy measures in the future. Besides, the EC has kept refusing China’s request for consultation for compensation as a result of its modification of Schedule on poultry meat. We would like very much to seek an early solution to this issue. Mr. Chairman, in the current economic and financial crisis, the slowing down of the world economy is evident, and we have witnessed a negative growth of SINO-EC bilateral trade since 2009. The decrease in trade volume has impacted both sides, especially Chinese industries and SMEs. China believes that it is our common wish to fight against trade protectionism and China hereby hopes the EC will continue to open its market in areas of trade in goods, trade in services, investment and technology. It is also our hope that the EC will continue to commit itself in further improving its trade regime and practices, demonstrate pioneering spirit in DDA negotiations and make greater contribution towards the multilateral trading system. Finally, I wish the ninth Trade Policy Review of the EC a great success. Thank you, Mr. Chairman.

Print