Appliance Industry Establishes Fair Trade between EU and China
Dec 3, 2004
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CECED, the European Committee of Manufacturers of Domestic Equipments, and CHEAA, the Chinese Household Electrical Appliances Association, have signed the first direct agreement between non-institutional parties of the European Union (EU) and People’s Republic of China to jointly develop free and fair trade and to oppose the manufacture and trade of counterfeited products in the household appliance industry.

The agreement was signed by Huo Dufang, president of CHEAA, and. Luigi Meli, director general of CECED, during the 2004 Plenary Session of the Consultation Mechanism on Industrial Products and WTO/TBT between the Enterprise Directorate-General of the European Commission and the Chinese Administration for Quality Supervision Inspection and Quarantine.

Following the agreement, the two organizations are committed to the orderly development of free and fair trade in appliances between China and EU. First, they have committed to oppose and combat the manufacture and trading of products that are counterfeited, copied, or infringe patents or trademarks. In particular, they will co-operate to identify sources, remove offending products from the market, and prohibit their promotion.

The agreement complies with the principles of fair trade in global markets that encourage the identification and removal of cases of product dumping and exploitation of non-tariff barriers to trade (e.g., unilateral technical standards or approval requirements).

“It’s a first significant step, following meetings and joint work which started in 2003," Mr. Meli said in a statement. "Trade in appliances between EU and China continues to grow within a community of interest which cannot be any longer ignored. This is a milestone for CECED, its member companies, and national associations: it opens an official channel of close contact and co-operation between our organizations, encouraging Chinese and European companies to agree on a Code of Conduct incorporating the principles of fair trade.

"We are proud to be pioneers in this area of non-institutional cooperation with China on such a delicate but fundamental matter as fair trade," Mr. Meli continued. "The domestic appliance industry, one of the key assets of European know-how and manufacturing capabilities, sees in the agreement a possibility to further grow, in a scenario of better trade conditions between Europe and China.”

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