EU, China Trade Dispute Over Screws, Bolts May Land In WTO
BRUSSELS --A trade dispute between China and the European Union over metal screws and bolts may be headed to the World Trade Organization.
The European Commission has proposed duties of up to 87% on fasteners imported from China, and a committee of experts from the E.U. national governments will vote on the issue Wednesday. The Jiaxing Association, which represents fastener manufacturers in the Jiaxing region, has asked the Chinese government to file a complaint at the WTO, claiming the duties violate international trade rules.
The duties are intended to prevent Chinese manufacturers from "dumping" their screws and bolts on to the E.U. market at prices way below production costs. The E.U. is considering antidumping duties on a number of products, ranging from stainless steel to canned mandarins.
Chinese companies shipped EUR575 million worth of metal screws and bolts to the E.U. in 2007, making Europe the largest overseas market for the Chinese products.
The E.U. has proposed to exempt Chinese subsidiaries of two E.U. fastener manufacturers - Agrati Group of Italy and Celo Group of Spain - from the duties that will apply to other importers in China. That has irked the Chinese companies, who say that their European-owned competitors are getting favorable treatment from the E.U.
"In the last five to six (antidumping) cases, the only companies that are getting 0% duties are European subsidiaries in China," said Robert Maclean, a partner at the law firm Crowell & Moring, which represents the Jiaxing Association.
E.U. trade spokesman Michael Jennings declined to comment on the prospect of antidumping duties against Chinese metal fasteners.
Most of the E.U.'s screw and bolt industry is in Italy, with the rest in Spain, France and Germany.
