Strasbourg: New law has been passed to prevent import of cheap Chinese products into European countries. It was passed by 554 votes to 48 against, in the European parliament’s session on Wednesday. It was finalized after last month’s discussion amongst the European council members and the parliament. Although, the European Union (EU) in the past has imposed various trade restrictions against China, yet additional rights and freedom have been granted to EU for imposing harsher restrictions in future. Expressing displeasure over this decision of EU, China has warned that the new law can impact the bilateral trade.
As per the law passed by the EU, countries exporting to the European nations will have to follow the international social and environmental standards. The European commission will be keeping an eye on the countries exporting to Europe. The European companies can register complaint against exporting countries ‘dumping’ products in Europe by just following the currently available process; no other process will be required. Necessary assistance will be offered to small and medium enterprises in such cases. Views of labor unions will also be taken into consideration while making decisions on trade restrictions.
Parliament stated that the law has been passed to prevent ill effects on the employment opportunities and businesses in Europe as well as to avoid loss of economy caused due to ‘dumping’ of cheap products by importing nations. It has also been mentioned that as a result of funding offered to the companies of the importing nations and the huge production capacity; European countries are finding it difficult to compete with cheap goods. These goods include iron, aluminum, cement, solar panels and chemicals.
Since most of these goods are imported from China, it is clear that new law is to counter ‘Chinese’ imports. During the last year the EU had indicated of actions against China for imports of iron and other goods. The new law proves EU’s more hard line approach towards it. This law will ensure that European industry remains well-equipped to deal with the unfair competition, said EU Trade Commissioner Cecilia Malmström.
China however has expressed disappointment over the new law. It has warned that EU’s image as trusted trade partner is impacted owing to the new law and it will affect bilateral trade cooperation. At the same time, it has also blamed EU of breaking world trade organization rules. China’s troubles have increased as the United States has also made important decisions targeting Chinese exports.