EU seeks defence against 'trade cheats'

Brussels will not apologise for protecting itself against “trade cheats” EU trade chief Peter Mandelson has declared.

Unveiling European commission plans for a public consultation on the use of protectionist measures against cheap imports, Mandelson said measures were needed to contain unfair trade.

"Effective action against dumping has helped safeguard tens of thousands of European workers and helps maintain the public's belief in free trade," he told reporters on Wednesday.

"Acting against unfair trade is an essential political and economic part of defending free trade and European competitiveness and people's jobs," he added.

The commission says it is seeking to revamp its trade protection measures in order to deal with new global challenges.

“Changes challenge familiar understandings of what constitutes EU production and the EU's economic interests," the EU’s trade chief argued.

But Mandelson must tread an impossibly fine line if he is to appease both the protectionist and free market camps within the EU – and this was clear from his speech on Wednesday.

Countries like Sweden attacked the commission’s use of trade defence instruments on Chinese bras and sweaters last year.

This year another trade row broke out over EU trade commissioner Peter Mandelson’s decision to impose import tariffs on Chinese shoes.

Member states such as Portugal and Italy welcomed the move saying they needed protection against “unfair trade” and Chinese dumping.

Meanwhile German brands like Adidas and Puma strongly opposed the duties - they said they amounted to protectionism and would mean higher prices for European consumers.

The British commissioner denied that he would use tariffs less often or to weaken the current regulation.

Instead he said he would focus on making sure anti-dumping legislation is "fit for its purpose.”

But in a sop to the so-called “northern liberals,” the commissioner added that Europe was not trying to protect itself from free and fair competition.

"We are not going to use our trade defence instruments improperly to protect EU business from low-cost competition that is legitimate and fair," he insisted.

The EU consultation will last until the end of March next year.

But in the mean time Mandelson said his priority is to conclude WTO stalled Doha talks.

The global trade round was suspended in July and risks being delayed by several years if there is no breakthrough early next year.

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