President urges EU to pursue WTO case against China's trade restrictions on Lithuania

VILNIUS - President Gitanas Nauseda has called on the European Commission to continue an international trade investigation against China over alleged coercive activity targeting Lithuania,

Nauseda's comment follows Bloomberg's report that the European Union is considering dropping the World Trade Organization (WTO) case, which is currently suspended.

"In our opinion, there are still some issues, which are related to the fact that not all of the restrictions have been lifted," the president told reporters on Sunday.

"Yes, I understand that presenting evidence and substantiating it is not simple. But it's certainly within the European Commission's capacity, so we encourage the EC not to give up, continue the case and expect a positive outcome," he added.

Following the opening of the Taiwanese Representative Office in the Lithuanian capital as part of Vilnius' efforts to deepen ties with Taiwan, China in 2021 downgraded diplomatic relations with Lithuania and, according to Vilnius, imposed trade restrictions.

Brussels brought the matter to the WTO in early 2022 but requested a temporary suspension of the case in late January 2023.

The EU's executive body said at the time that this was a procedural step taken for technical reasons.

According to the WTO, if the suspension lasts longer than 12 months, the proceedings will be closed altogether. The deadline is set to expire in a week.

Meanwhile, Prime Minister Gintautas Paluckas told reporters that Lithuania's position on this matter "isn't the most important," as it is not directly involved in the case.

"It's up to the Commission to decide, but the problem is probably that there's a lack of evidence of active actions by the Chinese government in this case," the Social Democratic prime minister said on Sunday.

"So, the relationship between the EU and China will certainly not be simple, and various economic factors are likely being taken into account. However, the key issue in this so-called case is evidence. We all feel it; we all probably understand what was done and how and by whom, but we need to put those things on the table," he added.

According to Bloomberg, despite debates about dropping the case, Brussels has not yet made a final decision.

However, the potential EU move "frustrated officials in Washington, where the incoming (Donald) Trump team sees it as capitulation to Beijing", the news agency wrote.

Trump has vowed to take a tough stance on China, and such an EU move would lead him to believe the bloc is seeking to maintain friendly relations with Beijing, according to sources familiar with the matter.

Officials from outgoing President Joe Biden's administration "are urging Europe to keep pursuing the case," Bloomberg reported.