The European Union has decided against joining the United States in pursuing a WTO action against China over piracy, the EU Trade Commissioner Peter Mandelson revealed on Monday, preferring instead to opt for dialogue.

"At this time, the European Union should be an observer of the case rather than a party to it," Mandelson said at a luncheon party hosted by Guan Chengyuan, Chinese ambassador to the EU. "I, as you know, favor dialogue over WTO cases. Dialogue is my preference."

Last week, the US government filed two cases with the WTO against China over IPR disputes and accession details to China's publication market, a move which China has slammed as going against useful trade dispute resolution mechanisms.

The EU trade chief brought up the 2005 solution to a Sino-EU textiles row as how to put differences aside and move forward. At the time, Mandelson himself led the talks with China, which led to a compromise between the two powers, avoiding a potential trade war.
 
Mandelson did have words of wisdom for China. He saluted the government's moves to bolster IPR and lower piracy rates, but added that improvements could and should be made in terms of law enforcement and implementing bilateral agreements to alleviate EU investor concerns.

"I have come under some pressure to join the United States in this case ... it is possible that the events may force me to rethink this decision," Mandelson warned.

Chinese ambassador Guan Chengyuan agreed with Mandelson that dialogue remained preferable to legal action in solving disputes, outlining China's efforts once again.

"It is our consistent approach to solve problems through dialogue and consultation, which is beneficial to the promotion of bilateral economic and trade relations," Guan said.

(Xinhua News Agency April 17, 2007)