Brussels, 28/07/2000 (Agence Europe) - The EU Council instituted a new definitive anti-dumping duty on bicycles imported from China, feeling that it is highly probable that on expiry of the measures taken in 1993, the practices they where meant to eliminate will reappear.
Regulation published in the Official Journal N° L/175 specifies that the re-examination of these measures (bases on an analogy between the Chinese market and a market economy country, namely Mexico) noted that, far from disappearing, the dumping carried out by the incriminated traders has noticeably increased. It also shows that: i) the volume of their deliveries in the EU risks being considerable in the case of an abrogation of the current measures, seen in the production capacities available in China, the antecedent circumventing of Community measures and the adopting of trade defence measures against them by other countries (South Korea, Mexico, Canada and Vietnam), iii) the Chinese companies will probably not continue exporting significant quantities without practising low export prices or dumping, iv) the Community industry has remained in a economically weak and vulnerable position since 1993, despite the enforcement of a duty since then, it has seen its production fall (-25%, its production capacities (-27%), the volume (24%) and the value of sales (8%), as well as its market share as a value (-8%) than in volume (-15%) and its assets (-12%). The suppression of anti-dumping duties is aggravating the situation of European industry, with new restructuring, factory closures, loses in economies of scale, etc. For these reasons, the European Commission, which lead the investigation, recommended to maintain the 30.6% duty for the next five years, which the Council approved.