Textile industry and MEPs target anti-dumping probe

Date: 11/12/1997

By Peter Chapman

MEPs and EU textile industry representatives are joining forces to try to persuade European Commissioners to drop an anti-dumping inquiry which, they claim, threatens to hike up the cost of raw materials and put thousands of jobs at risk.

The move follows a showdown with Trade Commissioner Sir Leon Brittan over the institution's latest inquiry into imports of unbleached cotton which the EU textile finishing industry buys from China, Egypt, India, Indonesia, Pakistan and Turkey.

The alliance, led by British Socialist MEP Arlene McCarthy, will now target the Commissioners for industry, regional policy and consumer affairs - Martin Bangemann, Monika Wulf-Mathies and Emma Bonino - at next week's European Parliament plenary session in Strasbourg.

“Brittan was not prepared to say very much, although after we briefed him at least he can now claim to understand the issue. We now want to carry our message to other Commissioners - particularly Bangemann,” said McCarthy, who pointed out that although Brittan would be the “prime mover” on the issue, any initial decision would have to be discussed by all 20 members.

The textile industry fears the Commission will decide to put in place provisional anti-dumping duties which will price its garment-makers and textile finishers out of the market in the face of tough competition from abroad.

One of the companies taking part in the lobbying effort is the UK cotton importer Broome & Wellington, which has taken the Commission to court for its decision to reopen an anti-dumping inquiry that had been dropped on two previous occasions.

Senior partner Joshua Rowe argues that the Commission acted illegally when it reopened the investigation following a complaint by Eurocoton, which represents EU cotton weavers, just days after member states had rejected an earlier call for duties to be imposed.

Eurocoton claims its members are being harmed by cheap imports of the unbleached product. But this is disputed by those opposed to the introduction of anti-dumping measures.

“The Commission thinks it is saving weaving jobs by calling for duties, but for every job they save there are 40 jobs lost,” said Rowe.

Even if the Commission decides to recommend permanent anti-dumping duties at the end of its latest inquiry, member states may once again overrule that recommendation.

But Rowe argues that the uncertainty caused by the Commission's decision to reopen the issue is already harming the industry, whatever the final outcome of the debate. He also warns that a Commission decision to impose interim duties until a final decision is made would hit the industry hard.