VILNIUS - The European Commission said on Friday that it requested the World Trade Organization (WTO) re-suspend the case over China's alleged trade restrictions on Lithuania to monitor whether the sanctions remain in effect.
The WTO resumed the case last week, just one day before it was set to be dropped. However, a few days later, the EU's executive body asked for it to be suspended for the second time.
"(...) the EU's request for resumption was followed by a request for a new suspension of the dispute settlement proceedings in order to continue monitoring whether any restrictions on exports from Lithuania to China remain in effect," the Commission told BNS in writing on Friday.
As with the first suspension, the case can be paused for a year.
If it is not renewed after this period, the dispute will be closed.
The Commission said that "the EU remains determined to challenge any coercive measures from third countries" against its member states.
"That is also why we continue to challenge China's measures against Lithuania," it said in the comment.
However, the Commission noted that "after the original Chinese blockade of goods from Lithuania in late 2021 - early 2022, trade between Lithuania and China has improved".
"Nevertheless, at the present time it seems appropriate to further assess and monitor trade developments with respect to the issues raised in the WTO dispute. The EU will decide on next steps based on its monitoring of the situation, together with Lithuania," it told BNS.
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, describing it as a procedural step taken for technical reasons.
China denies imposing restrictions and claims that companies stopped trading due to patriotic feelings hurt by Lithuania.
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