According to the European Commission, China has 10 days to respond to the formal WTO challenge to find a time and format for consultations on the brandy tariffs.
The European Commission on Monday announced that it was challenging provisional Chinese tariffs on imports of EU brandy at the World Trade Organisation (WTO).
The Brussels authority said Beijing is acting on insufficient evidence, and China has not proven that EU imports threaten the Chinese brandy industry.
The commission said China imposed punitive measures on European brandy in the wake of the European Union’s tariffs on the import of electric cars from China.
Beijing criticised the EU’s move on electric vehicles in China as protectionist and said Brussels violated WTO rules.
Trade relations have worsened between China and the EU as economic competition and political tensions have grown between both sides.
In July, Beijing started an investigation into EU pork products. Anti-subsidy investigations are also ongoing for certain imports of European dairy goods.
Meanwhile, Brussels has used new powers to investigate Chinese companies for evidence of unfair state subsidies in their bids for public tenders on projects in the EU.
EU Trade Commissioner Valdis Dombrovskis said the WTO challenge shows that the EU executive arm will protect the European economy “from unfounded accusations and misuse of trade defence measures.”
According to the commission, China has 10 days to respond to the formal WTO challenge to find a time and format for consultations on the brandy tariffs.
It added that should no suitable time and format be decided, a WTO panel may decide on the issue.
