OSLO: Trade frictions between China and the European Union (EU) have their global impact, but Norwegian experts say these frictions could not undermine the relationship between the two sides and overall international trade.
They said more transparency and respect of World Trade Organization (WTO) agreements and international regulations will boost cooperation and prevent trade protectionism.
China has expressed doubts about anti-dumping taxes imposed by the EU on steel products and solar panels from China, calling for an end to such unfair measures.
“Although there have been some trade frictions between China and Europe, they should not be over-dimensioned. The EU has implemented new anti-dumping measures on iron and steel, but most of the trade continues without problems,” Arne Melchior, senior research fellow at Norwegian Institute of International Affairs (NUPI), told Xinhua.
“Lower economic growth in Europe leads to more discussion on trade politics, the same way the industry crisis in 1970s led to quota restrictions on textile. Anti-dumping measures are more often used during recession,” he said.
Melchior believed that overcapacity in the metal sector and lower prices were what led to “a new discussion on trade politics in the EU, where its northern members have a more liberal attitude.”
“Brexit could eventually weaken the liberal wing in the EU’s trade discussion,” he added.
Melchior emphasized the importance of respecting WTO frames when resolving trade conflicts. “China could make an effort to counter criticism from the EU and the United States that refers to unfair competition by focusing on subsidies, patent rights and competitive conditions,” he said.
“Norway is not a member of the EU, but participates in the European Economic Area (EEA), and we are, together with the northern EU-countries, among those that are for freer trade,” he said.
The EEA was established in 1994 and now it contains the EU’s 28 member states plus Norway, Iceland and Liechtenstein. The EEA Agreement provides for the free movement of human resources, goods, services and capital within the single market.
