Germany Sets New Rules China'S Leather Industry May Be Hit Hard

From June 12 to 13, the sky was cloudy and sunny, and Shiling, known as the Huadu of leather goods in China, was a bit stuffy and humid in the air, with its unique flavor -—— Leatherwear Taste. A seminar is under way that may affect the trend of China's entire leather industry.

Experts, business representatives and government officials from all over the country gathered for an emergency consultation on Germany's plan to ban the detection of hexavalent chromium in leather products and leather toys that have long-term contact with human bodies. "Once this technical regulation of Germany comes into force, other EU countries will follow suit, which will severely damage China's leather industry," said Huang Yanjie, director of the Leather Chemistry Professional Committee of the China Leather Association.

There is a special term under the framework of the World Trade Organization (WTO) for Germany to introduce technical measures and secretly set a threshold for the export of other countries' goods, which is called technical barriers to trade.

Since joining WTO in 2001, China has encountered more and more TBTs. The enterprises in the Pearl River Delta, which are dominated by export-oriented economy, are "the prophets of spring river water warming". In the face of the increasingly severe situation, Guangdong enterprises have gone from being attacked passively to taking the initiative to complete the magnificent breakthrough and upgrading again and again. "It can be said that Guangdong has played a leading role in TBT response," said Wang Lizhou, director of TBT Research Department of China's WTO/TBT National Notification Consulting Center.

Terminology

TBT -- Technical trade barrier

TBT ("Technical Barriers to Trade"), also known as technical barriers to trade, refers to some mandatory or voluntary technical measures taken by a country or region to safeguard national security, protect the life, health and safety of human beings, animals and plants, protect the environment, prevent fraud, and ensure product quality. These measures have become a threshold for other countries to enter the country's market, and are the main manifestations of non-tariff trade barriers.

Under the WTO Agreement on Technical Barriers to Trade (TBT Agreement), WTO members are obliged to inform other members of the TBT measures being formulated through the WTO Secretariat in accordance with the provisions of the TBT Agreement and the format specified by the WTO Secretariat; Any WTO Member has the right to make comments on TBT measures notified by other Members and request the other Party to consider them sympathetically.

TBT obstacle climb

The number of notifications doubled in six years

TBT has become a new way for developed countries to control imports and carry out trade protection. On April 19, 2010, Germany notified other members through the WTO Secretariat of a TBT measure that is under development, namely, "Cr (VI) shall not be detected in leather products and leather toys that have long-term contact with human body." Cr (VI), known as hexavalent chromium in Chinese, is an allergen. "It is totally unreasonable for Germany to propose such a measure. At present, about 80% of the world's leather is tanned with chrome salt. It is impossible to detect hexavalent chromium in the leather tanned by this process, while the performance of products tanned by other methods will be greatly reduced." Huang Yanjie said, "Germany basically does not produce leather. Of course, it can make such a request, but it will be a big blow to a leather tanning country like China. Once other EU countries adopt similar regulations, our leather industry will be severely damaged."

According to the TBT Agreement, Germany, as a WTO member, has the right to formulate and implement TBT. "TBT is characterized by its nominal rationality and formal legitimacy," said Hong Liang of China WTO/TBT Guangzhou Notification and Consultation Center (hereinafter referred to as "Guangzhou TBT Center"), "Members of the WTO should not arbitrarily adopt anti-dumping, countervailing and other protective policies. As a result, tariff and other non-tariff measures are decreasing year by year, while TBT is increasing year by year. The number of notifications is increasing year by year, which has become an important means for developed countries to control imports and conduct trade protection." In 2003, The total number of WTO/TBT notifications issued by China's WTO/TBT National Notification Consulting Center throughout the year was 794, which began to rise gradually in 2006, reached 1337 in 2008, rose to 1721 last year, and doubled in six years.

According to a survey by the General Administration of Quality Supervision, Inspection and Quarantine of the People's Republic of China (AQSIQ), among the provinces that are greatly affected by TBT, Guangdong ranks first, ahead of Shandong and Jiangsu. Take Guangzhou as an example. Last year, 21.3% of enterprises suffered from the impact of TBT, which is higher than the national average of 15.22%, far exceeding the impact of customs duties, quotas, licenses and anti-dumping, and becoming the second largest enterprise export barrier after the exchange rate. "

Functional departments take the lead

Respond to TBT gateway moving forward

Guangzhou TBT Center released more than 2000 early warning messages last year and organized 39 notifications for review

TBT shows a growing trend, and the affected area of enterprises is also expanding, resulting in increased economic losses year by year. So, how to deal with it? The answer given by Guangdong is not to be beaten passively but to take the initiative.

Local governments in the Pearl River Delta, especially related functions

Departments should take active actions to actively guide enterprises to deal with TBT. For example, when Guangzhou and Shenzhen set up TBT notification and consultation centers, Guangzhou even went a step further and took the lead in setting up a joint response system to technical barriers to trade in Guangzhou (hereinafter referred to as the "system"), with the vice mayor in charge as the convener, and members including 11 relevant government functional departments such as the Quality Supervision Commission, the Development and Reform Commission, the Economic and Trade Commission, and the Foreign Economic and Trade Bureau, which invested special funds year by year, Each member holds a liaison meeting every quarter to actively respond to TBT.

"The establishment of local TBT centers can help enterprises to grasp the situation of foreign technical barriers to trade in a timely manner, so that enterprises can understand foreign standards and regulations, and know themselves and their partners." According to Hong Liang, his Guangzhou TBT Center published more than 2000 early warning information through its website in 2009. "Through early warning, we can push the barrier response to the forefront, and make enterprises respond to foreign technical trade measures from passive to active, to a certain extent, we can eliminate the barrier effect on related industries in the bud, and protect the economic interests of the country and enterprises to the greatest extent." Wang Lizhou said.

In addition to giving play to the role of notification and early warning, the local TBT centers in the Pearl River Delta also actively participate in notification and review. For example, Guangzhou TBT Center organized and participated in 39 TBT notification reviews in 2009, accounting for 14.9% of the national total. Hong Liang said, "Our review work has taken the lead in the country. Moving forward the threshold of responding to TBT can help enterprises take active response and defense measures in a timely manner and effectively overcome foreign technical barriers to trade."

Learn to "bargain" and "bargain"

"Announce the review"

Successful case: urge the EU to abolish a draft regulation on energy efficiency of TV sets and other products

On the 54th day after Germany issued the TBT bulletin on April 19, the China WTO/TBT National Bulletin Consulting Center decided to hold a review on the bulletin in Shiling, Huadu. The specific organization of the review was undertaken by Guangzhou TBT Center. According to the provisions of the TBT Agreement, there is a review period of less than 60 days after a member sends out a notice, during which other members can put forward comments on their notice and ask the other party to consider it sympathetically.

In the review, in addition to experts and TBT response officials from all provinces and cities, reporters from Yangcheng Evening News found that many enterprise representatives actively participated in the site. A person in charge of a leather goods production company said: "I heard that this TBT notification review meeting was held here, and I came back from abroad without saying a word. Our Guangdong enterprises need to make more voice in the world, and participating in the TBT notification review is an important means." Hong Liang said: "Now we have more and more enterprises participating in the relevant TBT notification review, and Guangdong enterprises are willing to directly safeguard their own and industrial legitimate rights and interests through the review of other WTO members' notifications."

If the notification review is compared to "bargaining", then in the history of just six and a half years of TBT notification review in China, one of the most successful cases of "bargaining" largely benefited from the voice of enterprises in Guangzhou.

The story goes like this: at the beginning of May last year, the EU issued four TBT circulars, one of which was to put forward higher requirements on the energy efficiency of TV and other products; On the day of receiving the notification from the National TBT Center, the Guangzhou TBT Center immediately gave a risk warning to relevant enterprises in the city through website announcement, email and other means; On May 27, nearly 50 relevant enterprises in the Pearl River Delta sent representatives to participate in the EU energy efficiency TBT briefing held in Guangzhou to reflect on the counterattack; At the national bulletin review meeting on TV energy efficiency labels, Guangzhou TBT Center gathered the opinions of Guangzhou enterprises and experts and put forward three comments, which contributed to the repeal of the draft regulation by the European Union.

"This is the first time that a developed WTO member has formally and completely accepted our comments, effectively protecting the interests of relevant domestic industries." Wang Lizhou said, "This alone has avoided tens of millions of yuan of economic losses, which is an important achievement of TBT review."

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The enterprise practices internal skills hard

Practice hard technology to break barriers

Increase investment in science and technology, actively obtain international certification or directly participate in the formulation of international standards

"The number of times that our comments on the TBT bulletin have been completely adopted is not very large, and more often, the sender of the bulletin has completely ignored it, so our enterprises should strengthen their internal skills and develop hard technologies to break the barriers against specific barriers." Wang Lizhou said, "In this regard, many enterprises in the Pearl River Delta have performed well."

According to statistics, enterprises in Guangzhou alone spent 50 million dollars last year on technological transformation, purchase inspection and quarantine equipment, apply for and obtain new certification, improve packaging and labeling, pay close attention to product quality, increase scientific and technological investment, and actively obtain international certification. For example, Guangzhou Yadi Packaging Co., Ltd., with the help of Guangzhou TBT Center, started with the EU packaging instructions and supply chain management mode to improve product quality, and finally realized the smooth export of packaging boxes and display counter products to the EU, earning more than 5 million yuan in foreign exchange.

In order to break through foreign TBT, Pearl River Delta enterprises actively adopt international standards and foreign advanced standards in technology, safety, health, environmental protection and other aspects to produce, increase the recognition of products exported abroad, reduce and avoid returns, recalls and other phenomena.

Some enterprises go further, directly participate in the formulation of international standards, and grasp the dominance of industry development. There is a private enterprise specialized in the R&D, production and sales of infrared thermal imagers in Guangzhou. In May last year, it formally submitted the NP (proposal stage) document for the development of an international standard to IEC (International Electrotechnical Commission). By July, IEC website published the NP document, "which shows that the company has made substantial progress in the development of international standards."

"I believe that our enterprises in the Pearl River Delta will be able to break or span the TBT of this industry and promote local economic and social development." Wang Lizhou is optimistic about the breakthrough and growth of enterprises in the Pearl River Delta in response to TBT.