EU imposes duties on pipes and foil from China

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The European Union on Thursday decided to impose a five-year official anti-dumping duty on seamless steel pipes and aluminum foil from China. The tax rates are 39.2 percent and 30 percent, respectively.

The Ministry of Commerce has been opposed to the new tarrifs since April, when the EU publicized its intent to impose a provisional anti-dumping duty on Chinese seamless steel pipes. The official anti-dumping fees will be implemented by October 8th.

Wu Xingchun, deputy general secretary of China Steel Industry Association, said, "The China Steel Industry Association strongly protests, and firmly opposes, the duty. This is the first anti-dumping case against Chinese steel products over charges of damaging and threatening the import market. That's libelous and has hurt Chinese steel industry and seamless pipe makers very badly."

Wu Xinchun says that, since the EU ordered a probe into the products in July 2008, the China Steel Industry Association and related companies have participated in case hearings and provided evidence. But the EU rejected the Chinese companies' pleas. Wu adds that, during the one year investigation, the seamless sector in the EU enjoyed a 15 percent profit margin, indicating clearly that it's not at all "damaged or threatened" by imports from China.

Wu Xinchun said, "The China Steel Industry Association will actively communicate with the Ministry of Commerce, and call on the Chinese government to take legal action to protect the legal rights of the steel industry and seamless steel pipe makers."

Wu Xinchun says action speaks louder than words. Although European leaders have repeatedly promised to oppose trade protectionism, most recently during the just-concluded Pittsburgh G20 Summit, the EU has carried out a number of so-called anti-dumping procedures against various commodities from China. These include steel wire rods, sodium gluconate, seamless steel pipes, and aluminum foil.