EU dismisses modified cotton dumping plan
EU dismisses modified cotton dumping plan
BRUSSELS (Reuter): European Union member states rejected on Friday a modified plan for definitive anti-dumping duties on cotton imports from China, Egypt, India, Indonesia, Turkey and Pakistan, EU diplomats said.
Renewed talks after Friday's rejection, held at France's insistence, failed to overturn the decision of eight of the EU's 15 member countries, said a Dutch diplomat.
"The Council of Ministers has taken a decision by written procedure not to adopt the proposal," the diplomat added.
National capitals had until 4 P.M. (1400 GMT) on Friday to accept or reject the European Commission's modified proposal for duties on unbleached cotton fabric imports from the countries named.
The five EU countries supporting the plan on Friday were Belgium, Greece, Spain, Italy and Portugal, a second diplomat said, while France and Luxembourg gave no reply.
The EU ambassadors seemed set to reject the plan after a first meeting on Thursday but after a second one a Commission spokesman said there was "quite a strong likelihood" of a deal.
But the Commission offer to review the duties after one year, instead of the customary five, was not enough to swing at least two countries behind the six originally backing the plan.
The EU has until May 20 to confirm provisional duties imposed by the Commission last November. The Commission decision set in train a review period after which duties lapse if not made definitive.
"The one thing that is still uncertain is whether one member state or another asks for a special meeting of the Council," the Dutch diplomat said, adding that even such a meeting could not overturn Friday's decision but might theoretically consider yet another modified plan.
Measures
The original measures would have hit Chinese-origin imports with 18.9 percent duties, those from Egypt with 13 percent, India 17.2 percent, Indonesia 14.5 percent, Pakistan 22.9 percent and Turkey 17.5 percent.
Total imports from the six in 1995 were worth 379 million European currency units (us$436 million), one official said. Companies which had cooperated with EU dumping officials' inquiries would have faced reduced rates.
The row, and repeated flip-flops around a deciding majority, reflect a north- south divide between the EU's free-trade enthusiasts and those countries in the south favouring more protected markets.
A third EU diplomat expressed amazement at Thursday's turnaround from rejection to apparent acceptance.
"We can only guess that pressures on the Commission have been excessive," the diplomat said.