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On 27 January, the European Commission launched a case at the World Trade Organisation (WTO) against China over its illegal economic pressure on Lithuania and the European Union, initiating the WTO dispute settlement consultations with China. According to the EU, the Chinese discriminatory restrictions are illegal under the WTO rules.

“We welcome the European Commission’s decision to initiate consultations with China on behalf of the EU. The EU has sent  a very clear message to China that it will not tolerate the politically motivated economic coercion,” said the Minister of Foreign Affairs of Lithuania Gabrielius Landsbergis.

The Foreign Minister also highlighted that Lithuania was seeking to de-escalate the situation with China and to trade Files with China. However, the evidence collected by the Ministry of Foreign Affairs clearly shows systemic breaches of the WTO rules, therefore, it is necessary to take all possible measures to protect not only the legitimate interests of Lithuanian companies and investors, but also the legitimate interests of all EU businesses.

Lithuania hopes that China will agree to participate in the consultations with the EU and that the consultations will lead to the amicable solutions regarding the existing trade disruptions, and will also help to ensure long-term sustainable solutions.

Landsbergis also noted that the initiation of the WTO dispute settlement proceedings against China demonstrated the EU’s solidarity and unity. “It does not matter whether China exerted illegal economic pressure on an individual EU member state or against the EU as a whole — the European Union will react and will actively defend its rights, using every opportunity offered by international rules,” said Lithuania’s Foreign Minister, who also added that besides the initiation of the WTO consultations with China, it was necessary to continue developing an EU Anti-Coercion Instrument.

The consultations are the first step in the WTO dispute settlement procedures that will give the opportunity to find  a satisfactory solution. If the consultations do not lead to a solution, the EU may request an establishment of the WTO arbitration panel.