EU launches WTO challenge against China's brandy duties

BRUSSELS, Nov 25 (AFP): The European Union on Monday formally launched a challenge at the World Trade Organization against China's move to impose anti-dumping measures on brandy imported from the bloc.

Beijing's move last month appeared to be a tit-for-tat measure against Brussels after the EU imposed hefty additional import tariffs on Chinese-made electric vehicles.

"This step reflects the EU's firmly held view that China's provisional measures on EU brandy are not in line with WTO rules," the European Commission said in a statement.

China's commerce ministry insisted the measures were "legitimate" and fully complied with WTO rules.

"China has the responsibility to safeguard the legitimate demands and lawful rights and interests of its domestic industries," it said.

China targeted European brandies after EU countries last month gave a definitive green light to additional tariffs of up to 35.3 pper cent on electric cars made in China, despite strong German opposition.

The Chinese commerce ministry released a list detailing the rates each company would expect to pay, ranging from 30.6 pper cent for cognac house Martell to 39 pper cent for Jas Hennessy and 38.1 pper cent for Remy Martin.

The EU has defended its electric car tariffs as "reasonable" and says they were imposed only after an in-depth investigation concluded that Beijing's state aid to auto manufacturers undercut European carmakers.

China has filed its own complaint with the WTO over the EU's decision to impose the new tariffs on Chinese-made electric cars.