2 February 2016 / Today, European Trade Ministers met to discuss Chinese dumping and China’s Market Economy Status (MES) in Brussels. The European Commission presented Ministers with a paper, which downplays potential European job losses to a level between 63,600 and 211,000 jobs if the EU were to grant China MES in 2016.
According to AEGIS Europe, an alliance of about 30 European industries generating more than €500 billion in annual turnover and millions of jobs across the EU, evidence points to job losses being significantly higher from the EU granting MES to China. Economic research estimates that in reality between 1.7 to 3.5 million EU jobs are at risk. This figure exceeds the Commission’s calculations at least tenfold.
AEGIS spokesperson, Milan Nitzschke said: "You would think the European Commission’s admission that there are already hundreds of thousands of jobs at risk would be sufficient not to grant MES to China", adding: “To downplay the real numbers, the European Commission has looked essentially only at those specific products where there are already anti-dumping measures in force today. If new anti-dumping procedures already underway and reviews of existing measures (also underway) were included, the real figures would show an additional 100,000 jobs at risk, bringing the total to at least 311,000. Moreover, China’s latest five year plan demonstrates its intention to take over global markets in new industries and export millions of job losses to Europe. The examples of solar panels and glass fibres show how quickly China builds up overcapacities and dumps new, advanced products onto the EU market.”
According to AEGIS Europe and leading economists dumping destroys competition, jobs and innovation and therefore the cornerstones of Europe's economic future.
Nitzschke concluded: “Granting China MES is an unlimited license to dump, destroying millions of jobs in sectors like steel, automotive, energy technology, tools and chemicals. In 2016, the EU discussion is focused on China’s destructive dumping of steel, solar, ceramic and glass fibre, among others. If the EU surrenders MES to China, we would quickly face unfair trade in the automotive, other mechanical engineering, advanced materials, telecommunications, and many other strategic European industries. EU trade ministers and the European Commission must not jeopardise Europe's key manufacturing industries, which are essential for investments, growth and employment in the EU."
For more information contact:
M: +32 (0) 488 945 579