4/19/2010
NEWS BRIEFS
Report: EU Stainless Antidumping Case To End
The European Union’s antidumping investigation on stainless steel fasteners from India and Malaysia is likely to be terminated soon, reports Fastener+Fixing Magazine editor Phil Matten.
While official confirmation has not been received, it is known that Dr. G. Marzorati of the EIFI Stainless Steel Group wrote to the Director of Trade Defence on 1 April withdrawing the antidumping and anti-subsidy complaints, filed on June 30, 2009, against stainless steel fasteners originating in India and Malaysia.
Then on April 13, the director of trade defense for the European Commission issued a letter to all participants explaining that proceedings may be terminated unless such termination would not be in the EU’s interest. Interested parties have until April 26 to respond.
“This appears to be procedural and there looks to be a strong probability that the Commission will, in due time, announce the termination of the investigation,” Matten writes.
While the cause of the action is unclear, there are suggestions that legal representation from the defendants may have identified significant anomalies in the EU production share data included in the original complaint.
“Whether or not this proves true it is clear that the complainants had serious concerns that the investigation might conclude against it,” Matten reports.
By withdrawing at this point, the potential exists for EU fastener makers to present a new case quickly, which could result in an earlier decision.
There is anecdotal evidence that the Commission was dissatisfied with the veracity of some information collected while investigating exporting companies and that it might already have decided to bypass the preliminary decision and move into the definitive phase in order to gain time to carry out further investigations.
“Termination of the investigation would prevent this being necessary but could mean significant further investigation in the event of a new complaint.”
The official timeframe allows the EC 45 days to consider whether an investigation is required. Under regulations, it is permissible to apply preliminary tariffs as early as 60 days after the investigation commences.
While it seems improbable that things would move that swiftly in the event of a new case, “the potential that preliminary tariffs could be applied earlier than the 9 month deadline appears substantial,” which means considerable continued uncertainty for the importers and exporters involved,” Matten notes.
“At a time when the stainless steel supply market is extremely volatile as a result of price movements in steel, nickel and other minerals, lack of transparency over this case has to be seen as counterproductive for all involved.” ©2010 GlobalFastenerNews and Fastener + Fixing Magazine
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