By Daisy Ayliffe - 6th December 2006
The European commission will consult the public on the EU's use of protectionist measures against cheap imports from countries such as China.
In a policy paper set to be published on Wednesday, the EU executive will invite voters to comment on how anti-dumping measures should be used in future.
“Anti-dumping, anti-subsidy and safeguard measures…allow the EU to defend its producers against unfairly traded or subsidised imports and against dramatic shifts in trade flows in so far as these are harmful to the EU economy,” the commission said in a statement on Wednesday.
The European commission is caught between protectionist-minded continental Europe and the so-called “Northern block” of free- traders when formulating trade policy.
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.
Fierce lobbying campaigns surround the commission’s latest consultation exercise.
EU trade group EUROCOTON have urged the commission not to give in to the free-marketeers.
“It must consider the trade defence instruments for what they are…legitimate legal instruments aimed at addressing the injury caused to European producers by unfair trade practices,” EUROCOTON wrote in a letter to Mandelson.
But EuroCommerce, who represent EU retailers insist open markets are in Europe’s best interest.
“The recent decision to impose antidumping duties on footwear imports from China and Vietnam is exemplary of the shortcomings of an old-fashioned and overly politicised trade “defence” system that does no longer live up to the reality of a global business environment,” EuroCommerce said in a statement.
UK Conservative MEP Syed Kamall echoed the calls for Europe to ditch protectionism.
“Europe's export defence policy is costing jobs, pushing up prices for consumers and failing to grasp the opportunities created through globalisation,” he told reporters.
Also on Wednesday, the commission will press member states to conclude association agreements between the EU and the Central American and the Andean Community regions.
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