EU Fastener Makers Demand Duties For China

Jason Sandefur

In a new test for trade ties between the European Union and China, fastener manufacturers from a dozen European countries, including Britain and France, have joined a group of companies demanding an end to what they say are unfair imports, Reuters reports.
Trade disputes have intensified between Brussels and Beijing since the EU”s trade deficit with China has grown to EUR 160 billion (US$249 billion) in 2007.
The case involving fasteners is probing deeper into manufacturing practices in China.
“Just in Italy, quite a few of our companies won”t see the end of 2008 unless something is done,” said Giorgio Donati of Fontana Luigi, a fastener manufacturer near Milan.
The fastener companies are calling for anti-dumping duties to slow Chinese imports, which have soared to nearly 30% of the EUR 4 billion fastener market in Europe.
“When you get products exported to Europe at a price below the cost of raw material, and the price of raw material is the same (around the world), it must be a matter for consideration,” Donati stated.
EU trade experts believe Chinese exporters get an unfair edge because of suspected subsidies in China”s steel industry. EU officials have already rejected Chinese requests for market economy treatment.
Chinese officials claims the EU has been unable to prove its allegations on steel subsidies, with the EU”s dumping investigation into Chinese steel wire rod just a few weeks old.
“This methodology is totally wrong,” a Chinese trade official told Reuters. “They have crossed the line. Anti-dumping investigations should be concerned with one product. You cannot say the wire rod prices are too low and punish fasteners.”
European trade chief Peter Mandelson is reportedly looking to decide in June whether to recommend hitting Chinese fasteners with provisional duties. \ �2008 FastenerNews.com