EU trade chief moves with care on dumping review
Source: Reuters
(Adds Italy reaction, background) By William Schomberg BRUSSELS, Dec 6 (Reuters) - The European Union's trade chief launched a politically sensitive review of how the bloc fends off underpriced imports on Wednesday and tried to reassure manufacturers he was not set on reducing their protection. The emergence of China as an export power has highlighted a split within the EU that often pits southern European countries such as Italy, concerned about the future of their industries, against the traditionally free-trading Nordics. Peter Mandelson, a trade liberal, said it was time to look at the EU's anti-dumping and other rules on unfair trade because so many European companies now make or buy goods from low-cost countries in Asia. But he had an open mind about the review. "I am not committed a priori to any reform of the system, far less to a radical overhaul," Mandelson told reporters as he launched a consultation paper. "But I do expect the consultation will highlight some areas that require further attention." The paper asks whether the needs of importers and consumers should be considered alongside those of manufacturers when deciding what is in the EU's "Community interest", one of the main factors in dumping decisions. It also asks whether Brussels should reconsider a rule that a request for an anti-dumping investigation must be endorsed by at least 25 percent of the European sector making that product. An earlier draft of the paper suggested a bigger percentage of EU industry might be needed to force a probe. An EU diplomat said some countries pressed to change the draft at the last minute, fearing it favoured importers. Peter Power, Mandelson's spokesman, said there were no substantial changes to the final text. Mandelson has been caught in the EU's divide on trade several times in two years as trade commissioner, most notably in disputes over imports of Chinese clothing and leather shoes. Italy, which successfully pushed for anti-dumping duties in the shoes case and is now worried about Chinese furniture imports, will remain "cautious" about changes to the EU rules, the country's Trade Minister Emma Bonino said. Also on Wednesday, the European Commission asked member states for mandates to negotiate free trade deals with India, South Korea and southeast Asian nations such as Malaysia and Thailand, and in Central America and the Andean region. The Commission hopes to launch the talks in 2007 but says its priority remains the conclusion of the World Trade Organisation's Doha round of global trade negotiations. The Doha round was suspended in July and risks being delayed by several years if there is no breakthrough in early 2007.
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