Against China over patents, the EU asks a WTO panel, and Lithuania

Brussels (Belgium), December 8: For two of its pending trade disputes with China, the EU has claimed that it had requested the establishment of panels at the World Trade Organisation (WTO).One concern is the legality of China's trade restrictions against Lithuanian exports and EU exports containing Lithuanian content since December 2021.The other concern is the legality of China excluding EU owners of high-tech patents from accessing EU courts to effectively safeguard and enforce their rights, according to a statement issued by the European Commission on Wednesday.In addition, China's discriminatory and coercive measures against Lithuania affect intra-EU trade and intra-EU supply chains, and they impact the EU's internal market's functioning, according to the Commission.China has introduced discriminatory and coercive measures against exports from Lithuania and EU products containing Lithuanian content since December 2021.

China suddenly formalized complete import controls on alcohol, beef, dairy, logs, and peat imported from Lithuania, according to the 27-member bloc, citing phytosanitary reasons for doing so.China was unable to establish that these prohibitions were justified when asked for further explanations.According to Chinese customs data, trade from Lithuania to China dropped 8 percent between January and October 2022, relative to the previous year.The EU is protecting its member states against Chinas discriminatory actions, according to the commission, by enforcing anti-suit injunctions, which prohibit companies with high-tech patents from pursuing their inventions in non-Chinese courts, including EU courts.

If it does so, the EU will renew its appeal and the task force will be created at the DSB's meeting on January 30th.Panel hearings can last up to one and a half years.