As a good example we can see the existing commercial conflict between The European Union (EU) and China, due to the anti-dumping actions the EU has undertakenagainst Chinese products like steel wire rod, seamless steel tubes, steel cables and aluminum alloy shafts.
Also, it is important to mention that the anti-dumping action taken by the EU against Chinese products causing concern and discontent in the population due to strong global financial crisis in the world economy. China is considered one of world economic powers as their current rateof economic growth has maintained an average of 9% in the last two decades.
So, we could say that perhaps the commercial differences between these two parties exist because the EU is motivated by the rising protectionism because the 27-Nation Bloc is at its worst recession since World War II, whereas China assumes its positions thinking about the free trade and exporting its products ata very low price.
For that reason the present investigation has the principal purpose of show which are the consequences and the effects that import restrictions*** causes in the economies of each country, as well as to show the different measures that can be adopted by the different Governmental authorities and the different mediating organisms in order to reach an agreement that couldallow to improve the commercial relations between these countries.
At the moment of analyzing which are the causes of the present situation between the EU and China and the effects of the antidumping actions, it is necessary to mention that the EU bases its decisions against unfair trade practices in some Chinese companies, but it has not presented any convincing evidence on theallegations. However, actually there exist unfair practices by the EU. From the beginning, the EU has refused to disclose the list of European companies have complained when antidumping investigation started, this violates the principle of transparency under the rules of the World Trade Organization (WTO)and this is unfair to Chinese companies because it deprives them of their vital right of defense.In addition, the EU is ignoring its own rules in the antidumping investigation of not to initiate an investigation unless the complainant representing at least 25 percent of total EU production of the products concerned. The fact that the EU has launched accelerated anti-dumping measures against Chinese companies is an irresponsible action that abused the rules of trade defense, because theyhave refused to recognize the market economy status of China, choosing Turkey as a substitute country to calculate the cost of Chinese companies producing aluminum alloy shafts, and this is an unfair choice to Chinese companies because there is no real comparison between China and Turkey in terms of economic reality or the development of their sectors.
Another antidumping measure taken bythe EU against Chinese companies is the one against steel seamless pipes in China, and about this action The Wall Street Journal said that the EU "is becoming more protectionists with the economic crisis." In addition, in April of this year the EU decided to impose antidumping duties against Chinese candles, and World Bank President Robert Zoellick, criticized the decision as one of four typicalactions against free trade after the G-20 Summit in London.
At the Summit, the leaders of major world economies, including EU countries promised to refrain from protectionism and adhere to open trade in the economic recession.
Nevertheless the EU are taking protectionist measures, when the history has shown that protectionism can not protect anyone from the crisis and only...