By Philip Blenkinsop NICOSIA, Feb 20 (Reuters) - The European Union should make low-tariff access to its markets for Chinese companies conditional on the openness of the Chinese economy to European
EU Trade Chief: No Low‑Tariff Perks for China While Markets Stay Shut
By Philip Blenkinsop
EU Push for Reciprocal Market Access
NICOSIA, Feb 20 (Reuters) - The European Union should make low-tariff access to its markets for Chinese companies conditional on the openness of the Chinese economy to European businesses, European Trade Commissioner Maros Sefcovic said on Friday.
EU–China Trade Deficit Highlights
The EU's goods trade deficit with China was 359 billion euros ($423.2 billion) last year, according to EU statistics agency Eurostat, second only to a record in 2022 and at a level Sefcovic said was "not sustainable".
WTO Ministerial Meeting in Cameroon
WTO Fairness and Reform Agenda
The EU trade chief said the World Trade Organization, whose 166 members will meet in Cameroon next month, needed to restore fairness to global trade.
"Some WTO members have dramatically expanded their share of global trade while keeping their own markets relatively closed," Sefcovic told a news conference after a meeting of EU trade ministers in Cyprus.
MFN Tariffs and Evolving Obligations
China has grown rapidly since entering the World Trade Organization in 2001 as its exports have benefitted from 'most-favoured nation' (MFN) import duties, which are set by each member and apply to all other countries in the WTO.
Sefcovic said there needed to be a "serious, honest conversation" about how the system functioned.
Linking MFN Status to Market Openness
"When a member's global trade weight rises significantly, but its obligations do not evolve accordingly, we have to ask hard questions," he said. "There must be a clear link between MFN and the actual level of market openness."
The European Commission wanted active discussion to find a solution, Sefcovic said.
Rare Earth Export Licences
Engagement Outcomes and Remaining Imbalances
Sefcovic said engagement with China had delivered some results, such as on the issuance of licences to export rare earths, but long-standing structural imbalances remained.
Exchange Rate Note
($1 = 0.8482 euros)
(Reporting by Philip Blenkinsop;Editing by Elaine Hardcastle)
