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EU extends anti-dumping duties on Chinese light bulbs

(Xinhua)
Updated: 2007-08-30 15:23

"This case has once again shown the complexities of managing anti-dumping rules in a global economy and against the broad range of EU interests," Mandelson said in a statement.

Last month, a majority of trade experts in the EU's executive body decided to support an end to the anti-dumping measures, a position also shared by the EU's top trade official.

But the extension proposal was said to be a compromise mainly between Mandelson and Enterprise Commissioner Guenter Verheugen, who pressed for a two-year transition period and has expressed concern about job losses at German producer Osram, part of the German-based Siemens group.

Osram has pushed to keep the duties in place, while most European producers, led by Dutch electronics group Philips, want them to be lifted.

Both companies have part of their production based in China for cost saving, but Philips has a much larger presence and imports more than other European companies, to such an extent that it can hardly be classified as a European producer.

"Continuing duties would be a backward, protectionist move to safeguard the short-term interests of one single company," Philips said in a statement prior to the commission's decision.

The Foreign Trade Association (FTA), which represents EU importers, said the move was bad news both for the industry and for consumers.

"It is not good for the European industry as some major producers do not want the duties to be extended. And also, it is not good for consumers since the prices are already high because of the duties," FTA spokesman Stuart Newman told Xinhua.

The anti-dumping measures were also criticized by environmentalists as unjustified in the EU's fight against global warming.

Ahead of Wednesday's meeting, the Switzerland-based World Wildlife Fund (WWF) urged the EU to end the duties, arguing that Europe has to rely on imports to meet its demand for low-energy light bulbs, which is essential to realize the bloc's goal of reducing greenhouse gas emissions by 20 percent by 2020 from the level of 1990.

"Ending the anti-dumping investigation and allowing imports of Chinese integrated compact fluorescent lamps could contribute to savings of 23 million tons of CO2 per year, equivalent to 0.5 percent of EU greenhouse gas emissions," Tony Long, director of the WWF's European Policy Office, said in a letter to EU Environment Commissioner Stavros Dimas.

It was estimated that EU domestic production can only meet 25 percent of its demand for energy-saving light bulbs, which could reach up to 400 million units by the end of this year.


(For more biz stories, please visit Industry Updates)

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