The Hindu Business Line : EU to terminate dumping duty on Chinese energy-saving bulb

Though the World Trade Organisation (WTO) rules permit nations to impose anti-dumping duties when the domestic industry suffers material injury following import surge at inexpensive price, rarely does the importing nation invokes consumer welfare to terminate anti-dumping duty. But the European Union (EU) has done this, in the case of energy-saving light bulbs its members import from China, which were subject to anti-dumping unit since 2001.

According to the Brussels-based External Trade Commission of the EU, the European Commission has recently adopted a decision to remove anti-dumping duties on energy-saving light bulbs from China in the next year.

In 2001, the EU slapped an anti-dumping tariff on Chinese energy-saving bulbs as they were being dumped on the EU market — which meant that because of State intervention or other market distortions in China, they were being sold at less than their real value in the European market.

When these duties were due to expire in 2006, EU industry pleaded an expiry review to determine whether there were grounds for prolonging the duties for a further span of five years.

This investigation was now over and following discussions within the Commission and with member States, the Commission would now recommend that it is in its own interest to discontinue these measures in the next year. The member-countries, now, have one month to consider the Commission’s proposal.

Explaining the rationale of its decision to go in for ending the anti-dumping duty on the said product from China, the EU stated that it has made efficient energy use and conservation a key priority.

The EU is likely to be able to meet only 25 per cent of its demand for energy saving light bulbs through domestic production.

In the Commission’s view, it is not in the Community’s interest under these circumstances to be adding a significant additional cost to the price of imported products by the anti-dumping levy.

The reason for delay in termination of the anti-dumping duty, the EU said this would allow a further spell of up to one year in which EU countries could adjust to new patterns of production and trade before the duties are discontinued.

This recommendation is in concert with the fundamental analysis of the Commission’s probe — which sees it as in the wider Community interest to discontinue the duties — while striving to reflect the legitimate interests of all stakeholders.

‘Bold approach’

Trade policy analysts contend that by candidly reckoning domestic capacity inadequacies and the welfare of consumers in view, the European Commission has taken a bold approach to the whole subject without succumbing to pressures from domestic manufacturers.

They said such an approach would help ease trade tensions and dampen protectionist sentiments in global trade.

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