EU Imposes Fresh Anti-Dumping Tariffs on Chinese Steel -- Update
July 30 2016 - 4:14AM
Dow Jones News
By Valentina Pop in Brussels and Eva Dou in Beijing
The European Union on Friday imposed anti-dumping tariffs on
certain Chinese steel imports, as the bloc steps up efforts to
protect European steelmakers struggling with overcapacity.
The duties range from 18.4% to 22.5% and apply to so-called
rebars, steel products used to reinforce concrete.
European manufacturers in recent years have lodged multiple
complaints that their Chinese competitors are exporting steel
products to Europe at unfairly low prices. The EU carried out an
investigation and at the end of January imposed lower, provisional
anti-dumping duties, which are now being replaced by the definitive
duties.
Under World Trade Organization rules, the EU can impose
anti-dumping duties on products from countries outside the bloc if
an investigation demonstrates that these products enter the EU at
prices below fair market value and cause injury to the EU
industry.
China's Ministry of Commerce called the EU decision
"unreasonable" and said it discriminated against Chinese
products.
"In its essence, this action is an artificial obstacle, an
exclusion of Chinese products, and unfair protectionism for EU
industry," the ministry said in a statement posted on its
website.
The decision comes amid a continuing investigation into unfair
trade practices by Chinese steel manufacturers, after a complaint
lodged in March by European steel association Eurofer, which
represents more than 25% of total EU rebar production. Eurofer on
Friday said it welcomed the decision.
Currently the EU has 37 anti-dumping and antisubsidy measures in
place in the steel sector, of which 15 concern China.
European industries say that the Chinese industrial policies
allow local producers to pump out far more goods than its domestic
market can consume. The result has been a flood of cheap products
shipped to Europe, the U.S. and other developed markets.
China, the world's largest steel producer, has doubled its
exports to the EU over the past two years, while the bloc's demand
languishes below levels seen before the 2008 financial crisis. EU
steel prices have fallen roughly 40% over the past two years.
Write to Valentina Pop at valentina.pop@wsj.com and Eva Dou at
eva.dou@wsj.com
(END) Dow Jones Newswires
July 30, 2016 03:59 ET (07:59 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.