About AEGIS Europe
AEGIS Europe brings together nearly 30 European associations representing a broad variety of industries including traditional industries, consumer branches, SMEs and renewable energy sectors, accounting for more than €500 billion in annual turnover and millions of jobs across the EU. This industry alliance, made up of leaders in sustainable manufacturing and social and environmental responsibility, is committed to European manufacturing as the fundamental driver of innovation, growth and jobs in Europe.
A strong industrial base is of key importance for Europe's prosperity and growth. This requires certain and predictable enforcement of the EU's trade defence system. Fair international competition and a level playing field are essential to guarantee a prosperous European economy.
AEGIS Europe highlights the necessity to effectively address distortions from state-run or other non-market economies, which risk endangering jobs and know-how in Europe's industrial value chain. In this context, AEGIS Europe advocates that:
- China is not a market economy. Granting Market Economy Status (MES) as requested by China would severely undermine the effectiveness of the EU's trade defence system and expose the EU market to unlimited Chinese dumping. Such a decision would seriously threaten the competitiveness and survival of many European companies, particularly SMEs.
- The Chinese economy as a whole fails to meet the EU's technical criteria for assessing MES. Moreover, solid legal analyses substantiate that there is no legal automaticity in the EU granting MES to China after December 2016, particularly if the technical criteria are not met.
- Any unilateral EU decision to grant MES is irreversible. Many of the EU's major trading partners do not consider that China has achieved Market Economy Status or that any change is automatic after December 2016. Therefore, if the EU were to take such a view, it would result in significant trade diversion effects.
The EU's trade defence system should remain balanced and effective in the absence of international competition rules and a level playing field.