THE European Union's challenge to Chinese duties on X-ray scanners has won the backing of the World Trade Organisation, with Brussels calling for the duties to be scrapped.
EU wins WTO backing in row with China over duties on x-ray scanners THE European Union's challenge to Chinese duties on X-ray scanners has won the backing of the World Trade Organisation, with Brussels calling for the duties to be scrapped.
"I expect China to remove the measures immediately," said EU Trade Commissioner Karel De Gucht following the WTO ruling in Geneva. "I will not accept tit-for-tat retaliation against European companies through the misuse of trade defence instruments."
China levied duties on the security scanners from Europe in 2011 after Brussels imposed tariffs on Chinese cargo scanners in 2010, a response the European Union said was purely retaliatory and broke global trade rules.
Reuters reported that the WTO panel ruled in favour of the EU, asserting that China's decision to impose duties was not based on an objective examination.
China's Commerce Ministry said in a statement that it would assess the judgment and reserved the right to appeal.
The report commented that the EU needs China to buy its products and help it emerge from the aftermath of the euro zone debt crisis. However, there are concerns that Beijing is using state financing to allow Chinese companies to produce goods that will compete with Europe, ranging from telecoms equipment to solar panels.
With regards to the row over the X-ray scanners, the EU claimed that Chinese import tariffs effectively closed the Chinese market to European security inspection equipment and were unjustified. It brought its case to the WTO in July 2011.
