EU may impose dumping duties on RI cotton<\/p>\n
BRUSSELS (Reuters): The European Union's executive body is
\nlikely next week to propose definitive anti-dumping duties on
\nimports of unbleached cotton from five countries while sparing
\nTurkey, EU sources said on Friday.<\/p>\n
The proposal, expected to be discussed by the Commission at
\nits Wednesday meeting, would seek definitive anti-dumping duties
\nagainst China, Egypt, India, Indonesia and Pakistan.<\/p>\n
The issue is explosive within the 15-nation EU, setting
\nnorthern member states against southern cotton producers.<\/p>\n
The European Commission in March imposed provisional anti-
\ndumping duties averaging 15 percent on unbleached cotton imports
\nfrom China, Egypt, India, Indonesia, Pakistan and Turkey. The
\nprovisional duties angered the targeted countries as well as a
\nnumber of EU member states.<\/p>\n
Eight EU governments, including Britain and Germany, said in a
\nstatement last week that the Commission had been wrong to
\noverrule the majority of EU states which did not want duties on
\nthe cotton imports.<\/p>\n
But, in a counter-declaration, Italy, France, Spain and
\nPortugal expressed their support for the Commission move.<\/p>\n
Under EU anti-dumping rules, the Commission may of its own
\naccord impose provisional anti-dumping duties for six months on
\ngoods it concludes are sold at unfairly low prices in the EU.<\/p>\n
After that, the Commission may ask for definitive anti-dumping
\nduties for five years, but needs the approval of a majority of EU
\nmember states.<\/p>\n
In the cotton case, the Commission must decide whether to seek
\ndefinitive duties by Sept. 9, and EU ministers would have until
\nOct. 9 to approve them or not.<\/p>\n
The Commission's new proposal is likely to call for definitive
\nanti-dumping duties against the five countries while dropping
\nTurkey, EU sources said. The proposed duties would average less
\nthan the 15 percent provisional duties.<\/p>\n
The Commission would try to negotiate undertakings whereby
\naffected producers could avoid duties by agreeing to charge a
\nminimum price for exports to the EU.<\/p>\n
The decision to spare Turkey follows a new Commission
\ninvestigation which found that Turkey accounts for less than 3
\npercent of EU imports of unbleached cotton.<\/p>\n
EuroCommerce, representing European retailers and wholesalers,
\ncondemned the proposed measures in a statement, saying they would
\nseverely hurt the European finishing industry.<\/p>\n
It said the measures would create \"a complex system of managed
\ntrade made up of a multitude of anti-dumping duties, minimum
\nprices and quantitative ceilings.\"<\/p>\n
By exempting Turkey from anti-dumping duties and making the
\nother changes, the Commission may stand a better chance of
\nwinning support from EU governments. But EU sources say it is
\nstill on a \"knife edge\" whether member governments will support
\nthe new proposal in October.<\/p>\n
Only six member states backed the new proposal at a meeting of
\nthe EU's advisory anti-dumping committee on Thursday, with
\nBelgium and Luxembourg abstaining, EU sources said.<\/p>\n
EuroCommerce said Austria, current EU president, came out in
\nfavor of the proposed measures. It said Austria was satisfied by
\nTurkey's exclusion from anti-dumping measures and by a more
\nlenient treatment of light fabrics used for embroidery.<\/p>\n
Since a majority of member states is needed for the definitive
\nduties to go through, the outcome in October is seen as hinging
\non the position of Belgium and Luxembourg.<\/p>\n
The Commission previously adopted provisional anti-dumping
\nmeasures against the same six cotton-producing countries in
\nNovember 1996. But six months later it was effectively overruled
\nwhen EU ministers rejected its request for definitive anti-
\ndumping duties on a 9-6 vote.<\/p>\n
European weavers have said that thousands of jobs were at risk
\nfrom cheap imports. The European textile industry countered that
\nthousands of jobs could also be jeopardized by the imposition of
\ndumping duties on its raw materials.<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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