trade defence focus on the recent wine cases: china · 2012/2013: solar panels, polysilicon,...
TRANSCRIPT
TRADE DEFENCE
FOCUS ON THE RECENT WINE CASES: CHINA
By José Ramon Fernandez, Comité Européen des Entreprises Vins
AIDV Conference 24th October 2014
Beaune, France
a) In merely 10 years:
The former « fortress Europe » has become a free trade world champion
Wine Reform: support measures to reinforce the competitiveness of the EU wine sector
Wine & Spirits reinforced their leadership as top EU agri-food exporter
b) Sudden proliferation of trade defence threats
Attempt n°1: Brazil – Safeguard (2012) Attempt n°2: China AD & CVD (2013)
Who would have believed this 10 years ago?
Une fois n’est pas coutume… … is twice a trend?
Ingredients for a perfect storm
Emerging markets
Rampant “adolescent” growth rates led by middle-upper class
Emerging domestic production… with severe structural handicaps (climate, varieties, quality, governance, culture, etc.)
Blurry borders between government and business, public and private spheres
Trade conflict escalation dynamics threats of retaliations in the air…
2012/2013: Solar Panels, Polysilicon, Telecoms and... Wine
Summer 2012: rumours of complaint from Beijing... ready to use but put in a drawer somewhere at Mofcom’s HQs.
o Commission opens an investigation on Chinese solar panels
o China launches an investigation on EU polysilicon companies
o The Commission decides (light) provisional EU duties on Chinese Solar
Panels,
o Mofcom opens an AD/CVD investigation on EU wines
o Commissioner threatens China with a possible ex-officio launch of an AD/CVD investigation on Telecoms.
Intriguing times… - Towards a trade war ?
• End July 2013: o Commission accepts a price undertaking on Solar Panels, to be formally
endorsed by MS by the end of 2013. o Mofcom goes ahead with the investigation on EU Wines; both parties
commit to facilitate a B2B dialogue and Mofcom commits not to impose provisional measures during this dialogue.
• October 2013: Wine B2B dialogue CEEV/CADA launched in Beijing, in parallel to
the investigation
• December 2013: the Chinese government says business cooperation is better than trade conflicts
• Deal reached in view of the 1st visit of the Chinese President to Europe.
Intriguing times… - Towards a trade war ?
The “Wine Case Killers Orchestra”
The “Wine Case Killers Orchestra”
What makes this case unique: Atomised sector
Fragmented supply chain
More than 5.000 operators
registered Coordination with national and
regional associations and companies
Percussion - Organisational and funding challenges
The “Wine Case Killers Orchestra”
Coordination with lawyers
Economic facts and legal arguments
Liquid nature of dumping
Breach of casual links
Winds – Legal challenges
The “Wine Case Killers Orchestra”
European Commission • Close coordination with EC case handlers
during the whole investigation • Commissioner and his office • Various departments DGs in HQs and
the EU Delegation
MS - crucial role at both political and
technical levels
Direct contacts with CN Embassy / Govt
Strings – Lobbying (EC, MS, CN)
The “Wine Case Killers Orchestra”
Opera – B2B Negotiations
B2B > MoU CEEV/CADA March 2014
• The Deal
• Activity Packages
• Opportunities
• Contact Us
• Special commodity ... special sector ... special case study • Trade Defence measures:
"It is not only about law »…(EU) "It is not only about economics »… (CH) ....It is politics, stupid!
• Legal and Advocacy must go hand in hand! • It is not an easy path for arbitrary protectionist attempts. Two failures so far... better not try again!
Lessons learnt…?
• Lack of appropriate comprehensive equipment and resources to face such multifaceted probes and coordinate the implementation of holistic operations… … but outstanding and decisive support, including financial, from key stakeholders here in the room! • B2B dialogue: the sooner and the stronger, the better!
Lessons learnt…?
THANK YOU!
For any question, please do not hesitate:
AIDV Conference 24th October 2014
Beaune, France