EU states urge rethink on cotton dumping duties
EU states urge rethink on cotton dumping duties
BRUSSELS (Reuters): Eight European Union states yesterday
complained to the European Commission over its decision to impose
anti-dumping duties on imports of unbleached cotton from six non-
EU countries.
In a letter of protest to the 15-nation bloc's executive, the
eight said the Commission was wrong to have overruled the
majority of EU states, who did not want duties on imports from
India, China, Egypt, Indonesia, Pakistan and Turkey.
"I am deeply concerned about the damage that definitive duties
would do to the UK textile industry," Britain's Europe Minister
Doug Henderson said in a brief statement. "An estimated 7,000
jobs are at risk in the textile finishing sector alone."
Britain was joined by Ireland, Austria, Denmark, Finland, the
Netherlands, Germany and Sweden in protesting against the duties,
which average 15 percent.
A majority of EU states voted against definitive duties
against the same six countries in May 1997 after the Commission
had imposed temporary duties in November 1996.
The Commission has until Sept. 9 to propose further measures
so EU governments can make a final decision by an Oct. 9
deadline.
EU anti-dumping rules say the Commission may impose
provisional anti-dumping duties on goods it concludes are sold at
unfairly low prices in the EU. It is then up to member states to
decide whether to make these duties definitive.
"A previous investigation was terminated in May 1997 because a
majority of EU countries rejected it. There is now even less
support," Britain's Henderson added.
European retailers and importers have argued that the duties
will increase prices for clothing and cotton goods within the EU,
although the bloc's weavers have welcomed the move.
The EU's textile industry employs some 2.5 million workers,
dyeing and turning the imported unbleached cotton into clothing
and finished products.
The Commission opened its probes after receiving complaints
from Eurocoton, a trade association representing the bloc's 5,000
strong weaving industry.
The weavers argue that thousands of jobs are at risk from the
cheap imports, while the finishing industry says it could lose
jobs over the duties slapped on its raw materials.
Nigel Gardner, spokesman for Trade Commissioner Sir Leon
Brittan, told Reuters that EU governments were split over the
issue, with southern cotton producers wanting permanent duties,
while their northern partners were opposed to any duties.
Gardner said the Commission could now either drop the duties
altogether, impose permanent duties or reach agreement with the
exporters on minimum prices.
The EU's anti-dumping advisory committee will discuss the
options next week, Gardner said.