China must see need to reform WTO rules, says EU trade chief

BRUSSELS: China must participate positively in negotiations at the World Trade Organization to change international trade regulations on industry subsidies, or else rivals may adopt their own trade policies at China's expense, the head of the European Union's trade department stated on Monday. output 

For a biennial meeting, ministers representing the 164 members of the World Trade Organization (WTO) will convene in Abu Dhabi from February 26 to 29. The agenda items include reforms to the WTO itself, trade in e-commerce, and subsidies for agriculture and fishing.

The European Union, according to European Trade Commissioner Valdis Dombrovskis, is eager to promote discussion on trade and industrial policy, which includes letting the least developed nations industrialize while minimizing the distortionary effects of subsidies elsewhere.

"It matters what stance China adopts in those talks," Dombrovskis stated in a Reuters interview.output

He stated that China was likely the nation that has gained the most from the WTO and that it need to be eager to maintain it as well as prepared to take on new difficulties.

He warned that this might be especially harmful to China, which is heavily dependent on exports, saying that "if those issues are left unaddressed, then different countries will start addressing them one-by-one according to their own understanding and political dynamics."

China did not respond to his remarks right away.

It is not anticipated that an agreement on the subject will be reached during the WTO's 13th ministerial conference (MC13). It's also not anticipated to lead to agreement on another issue, namely its Appellate Body, which serves as a global ultimate court in trade disputes.

Since2019, it has not operated due to US obstruction of adjudicator appointments.

"If we talk about the specific issue of the Appellate Body, so far we have not seen much of an opening from the U.S," Dombrovskis stated.

The head of EU trade claimed that MC13 might yet succeed. output 

"Also ahead of the previous ministerial, MC12, expectations were not really high, but eventually it became one of the most successful ministerials in WTO history," he stated.