Cerame-Unie President Alain Delcourt presented the ceramic industry's views on EU Trade Defence Instruments and the non-market economy status (MES) of China on 1 December 2015 at the European Parliament Ceramics Forum in Brussels.

1. Alain Delcourt
Cerame-Unie President
1 December 2015
NON-MARKET ECONOMY STATUS CHINA

2. Overview
•Key facts
•Production trends by ceramic sector
•Trade overview
•Market economy status of China

3. 1. Key facts

4. 2. Production trends by ceramic sector
Source: Eurostat 2015
BILLIONEUROS

5. 3. Trade overview
8.87
4.63
4.23
BILLIONEUROS
Ceramic exports:
Source: Eurostat 2015, Cerame-Unie data

6. 4. Market economy status of China
• China's WTO accession protocol Article 15
• MES applies to anti-dumping investigations
• Determines normal value (dumping margin)
• China fails on 4 out of 5 market economy criteria
• Only one subparagraph expires: Art. 15 a) ii
• EU to evaluate impact before MES is granted
• EU to coordinate with international partners
1 OUT OF 5 TECHNICAL CRITERIA MET

7. 4. Market economy status of China
Example Chinese Product: calculation of dumping margins
Export price to EU: €100
Compared against a
“Normal Value” = a reference price
China a non-Market Economy
Normal value: €130
Higher price, according to Third Country “Free
Market”
Calculation of dumping margin: 130 – 100 = 30
China has Market Economy Status
Normal value: €80
Lower price, according to state-run Chinese market
Calculation of dumping margin:
80 – 100 = no dumping
DUMPING MEASURES
POSSIBLE
DUMPING MEASURES
NOT POSSIBLE
VS.

8. 4. Market economy status of China
• MES to be assessed in the context of TTIP negotiations
• Redirection of Chinese exports away from the US to EU market if EU grants MES to China

9. 4. Market economy status of China
• Effect on the ceramic industry if MES is granted prematurely
• Around 338,000 jobs would be exposed in our sector (Eurostat)
• Includes a number of micro enterprises not represented by CU
• Cerame-Unie’s membership represents 200,000 direct jobs
• 100,000 ceramic direct jobs are being defended by anti-dumping measures:
• Ceramic wall and floor tiles
• Ceramic tableware
• Only efficient anti-dumping tools can level the playing field

10. 4. Market economy status of China
Source: Eurostat 2015
• In force since Sept 2011
• Imports from China decreased by over 65%
• If AD measures were removed around
70,000 direct jobs are at risk
• Majority are SMEs
Impact of effective AD measures in the ceramic tiles sector 2011 - 2015

11. 4. Market economy status of China
In absence of AD measures in ceramic tableware sector 2004-2011
• Period: 2004 – 2011
(no AD measures in place)
• China’s market share increased
from 20% to almost 70%
• Ceramic tableware sector lost
over 33,000 direct jobs
• Around 25,000 direct job
currently at risk if AD measures
are removed
Source: Eurostat 2015

12. 4.Marketeconomystatus ofChina
• Political decisions cannot ignore economic realities
• Rigorous & transparent impact assessment
• China to demonstrate first it fulfils market economy criteria
• Until then, the EU should not grant Market Economy Status
• Any unilateral EU action would be irreversible
• EU should coordinate with major partners in the WTO
• Anti-subsidy instrument not accessible to SMEs

13. Alain Delcourt
Cerame-Unie President
1 December 2015
Thank you for your attention!
NON-MARKET ECONOMY STATUS CHINA