The long-awaited proposal on China’s so-called market economy status (MES) was published today. The European Commission has proposed a new non-standard methodology, which constitutes a significant change to the EU’s anti-dumping legislation. The new methodology would no longer classify countries as market economies or non-market economies, in other words a de facto grant of MES to China.

Gerd Götz, Director General of European Aluminium, said:

“Today the European Commission announced a completely new paradigm for EU trade. The question of market economy or non-market economy could virtually disappear overnight. A change of this magnitude creates significant uncertainty for European industries like aluminium.

Amidst the uncertainty around this new legal framework, the EU should ensure a strong and well-established foundation. That foundation is without a doubt the EU’s longstanding five market economy criteria. These criteria must be the cornerstone of any new methodology.

Trade defence is not a question of politics but rather of rules. A rules-based trade system allows all trading partners to compete freely and fairly. If we do not hold our partners accountable, the EU risks losing valuable innovation, investments and jobs.”

Read our backgrounder on how granting MES to China impacts the European aluminium industry (attached).