European manufacturers urged to fight against surging imports

21/01/2004

British and European manufacturers are being urged to consider the use of European Union (EU) trading rules, which may be able to halt the effects of surging imports, in particular subsidised or dumped trading.

 

London-based law firm, King and Spalding International LLP, says that many companies are unaware of the laws and regulations in place to protect them. The company says that under certain circumstances, World Trade Organisation (WTO) ‘trade remedy’ rules give the European Commission (EC) the right to redress the damaging consequences of surging imports.

 

A partner at the firm, Steve Orava, added that other nations, particularly those in the fastest growing economies, had been quicker to use such laws. He said: “At a time when China, India, and countries in Southeast Asia are substantially increasing their exports to the UK and Europe, they are also initiating many more anti-dumping and safeguard cases than their western counterparts.” 

 

Between 1995 and 2002, anti-dumping measures increased 276% in developing countries, compared with just 11% in developed countries. Initiations of new anti-dumping cases increased 166% in developing countries while they declined 2% for their developed counterparts, the firm says.

 

In the first six months of 2003, China imposed 11 anti-dumping measures, compared with three in the US and just one in the EU.  China also announced the establishment of an anti-dumping early warning system to monitor imports for purposes of future anti-dumping proceedings.

 

Industries that are particularly under threat include textiles and clothing, chemical products, packaging materials, hand tools and a wide range of agricultural goods.