Mar.11--THE European Union is considering whether to bow to Beijing gaining market economy status at the World Trade Organisation on condition China drastically cuts its steel exports to Europe, according to an EU official involved in the talks.
A draft document from the European Commission seen by Reuters also suggests China's market economic status be viewed in the context of strengthening EU defences "against unfair trade practices" in the steel sector.
The overcapacity of steel is a major obstacle and will be the subject of a meeting in Beijing between EU and Chinese negotiators.
"Negotiators are considering linking the EU's decision on granting China market economy status to a higher drop in Chinese steel overcapacity," said an EU official.
EU data shows it has imposed sanctions in 37 cases of steel exported to Europe at dumped prices, of which 16 are on products coming from China.
Trade Minister Gao Hucheng said China has committed to decrease the nation's steel output "by between 100 and 150 million ton" in a letter sent in February to the EU Trade Commissioner Cecilia Malmstrom.
(Source:shippingazette)