A group of optical companies, such as Mingming has at present lodged a counterplea to the Turkey Government in opposition to its adoption of export barrier. This is the first one brought up by China after its WTO entry.
On the 13th of December 2001 we saw the Turkey Government issue a public notice three days after China's entry into the WTO, announcing that it would implement an assessment and protection measure for controlling the import of glasses (assessment and evaluation of the production cost of glasses) and at the same time set in motion the process of investigation.
The reason for this action is due to the application submitted by the Turkey Glasses Production Association to its government, claiming that due to the impact of the low-priced glasses from the Far East the Turkey Glasses Producers have suffered great losses and so it requires its own government to adopt an emergent measure for protection.
And according to the introduction of the China Chamber of Commerce for Import and Export of Light Industry and Arts and Handicrafts these glasses are mostly produced in Wenzhou, Zhejiang Province.
During the period of 45 days investigation and provisional control the Turkey Government will make a strict investigation on the production cost of the glasses from China. And the Chinese glasses export manufacturers will have to provide the Turkey Embassy in China with the original certificates as invoice, bill of lading and certificates of qualification so as to accept the examination and to get a letter of verification for re-entering the market.
The Turkey Government will have to give a ruling after it puts an end to the investigation. Should the ruling be unfavorable to the Chinese side it will enter into the state of official control and supervision. In line with the relevant regulations of the WTO the Turkey Government will set quota restriction on the import of glasses from China and impose higher customs duties on the glasses imported into Turkey that go beyond the restricted quotas.
As learned from the international conventions, to remove the import control and supervision through mutual consultation should be the work of the two governments. But the matter is now still in the period of investigation and provisional control, in which the Turkey Government is engaged in collecting from importers relevant production cost and so on for investigation, questioning the related information and sorting for opinions.
In this period, the glasses-manufacturers in Wenzhou are facing with the choice of whether or not to answer actively for the investigation. Having made an analysis of the case the glasses enterprises in Wenzhou come to realize if they answer actively for it they will be able to switch from the passive over to the positive. No matter how's the result it's necessary to spend several million yuan for answering the accusation. But if trying to save money and trouble and let others do whatever they like it is possible to suffer from an utterly unfavorable ruling and may lead to the negotiations between the two governments. That will take a longer time and suffer a great deal.
Confronted with such a vehement situation, the 13 such glasses-enterprises as Mingming and Shunwei in Wenzhou, after a joint consultation, have worked out a quick decision and measure to answer for the challenge imposed upon them by means of export barrier.
Under the guidance of the Wenzhou Bureau of Foreign Trade and Economic Cooperation and China Chamber of Commerce for Import and Export of Light Industry and Arts and Handicrafts they entrusted the matter to a lawyer from an international alien lawyer's firm stationed in China for handling the case and lodged a counterplea against the export barrier imposed by the Turkey Government.
The gist of the counterplea is to state clearly with the fact that the glasses from China haven't caused any losses on the Turkey's glasses industry, requesting that a "Hearing of Losses" be held by the Turkey and hoping that the Turkey Government will revoke the control and inspection measures on glasses exported from China.
Wenzhou is one of the major bases in China for glasses-production. In the year 2000, the total production value of optical lenses and glasses of the city came to over two billion yuan in Renminbi, of which 80 percent were delivered to foreign countries and that exported to the Turkey amounted to over six million in the US dollars.
To cluster together, the 13 glasses-enterprises said unanimously that they must not lose the Turkey market. Once lost, the other markets in other EC countries will follow suit and the future would be dreadful to contemplate.
Some responsible persons of Chinese enterprises say, we'll see more and more "foreign actions and complaints of such likes" since China has already joined the WTO. However, we'll be able to break up the barrier and come out a winner so long as we answer it in an active way in accordance with the WTO rules, otherwise we'll lose a large patch of international market.
( January 11, 2002)
