NEWS

EU launches WTO case against China for ‘targeting’ Lithuania

Brussels initiated the move

ISSUE

Lithuania

• Is one of the smallest countries in the European Union
• Allowed Taiwan to open a diplomatic outpost in Vilnius recently

Why China opposed – China does not recognise Taiwan as a state and considers the self-ruled democratic island a rebellious territory of the mainland.

WHAT WILL HAPPEN

• The European Commission handles trade policy for the EU’s 27 member states and takes the lead on conflicts at the WTO in Geneva, even if they involve a single state.
• By going to the WTO, the EU lent support to accusations by Lithuanian business leaders and officials that the row has resulted in China blocking imports from Lithuania and other economic restrictions.
• The move launches a 60-day window for the two sides to come to a solution before moving the dispute to a panel.

MAHITI FOR PRELIMS

BALTIC STATES

• North eastern region of Europe
• Estonia, Latvia, and Lithuania
• Eastern shores of the Baltic Sea.
• Surrounding countries – Russia, on the southeast by Belarus, and on the southwest by Poland and an exclave of Russia.
• Estonia is an important producer of oil shale, a large share of mineral and energy resources is imported.
• India and Baltic countries have historical connection and common linguistic roots.
• The cutting edge technology and innovation ecosystems of the Baltic countries complement India’s huge market and appetite for these technologies.