Peter Mandelson, EU commissioner for trade, has launched a review of anti-dumping measures in the light of European companies?increasing share of manufacturing ventures in the developing world.
Mr Mandelson is keen to learn lessons after imposing quotas on Chinese textile and anti-dumping tariffs on shoes from Asia over the last year. Consumer organisations, retailers and outsourced manufacturers claim the EU scored an own goal by punishing countries where Europe has a growing manufacturing presence.
?lobalisation has made trade relations ?between companies and between countries ?more complex and a lot more interconnected than it was even a few years ago. Europe? policy instruments need to reconcile these complexities,?Mr Mandelson told the FT, while defending the use of anti-dumping measures.
One of those is outsourcing. The measures against Vietnam have hit European companies that manufacture shoes there. They also risk throwing thousands out of work in the impoverished country, whose interests are not taken into account.
The European Commission is holding closed-door hearings on Friday over shoe duties imposed in April, ahead of trip by Mr Mandelson to China next week. The review could reopen the argument of last year between countries such as Sweden, where retailers opposed higher tariffs, and Italy, which still produces shoes and wanted its companies protected from cheap imports.
Liberals want to widen the scope of the so-called ?ommunity interest?clause, which gives the trade commissioner discretion not to raise tariffs even if dumping is determined on the grounds they would harm EU companies or consumers.
An attempt to do so by Sir Leon Brittan a decade ago foundered on the objections of national governments.
To draw some of the political sting, the Commission? trade department is asking outside experts for their views as well as governments of the 25 member states and interest groups.
Cliff Stevenson, a trade consultant who recently reviewed anti-dumping for the Commission, warned of the dangers of a purely economic review, given the political controversy involved.
?t provokes strong emotions on both sides of the debate,?he said. But he said the review was timely.
? applaud the commissioner? statement that trade defence instruments are not to be used to counter the comparative advantage of a exporting economy.?/FONT>
Emma Bonino, Italy? trade minister, said she would examine proposals with an open mind. ?he shoe tariffs are a measure to provide time for the sector to adapt to the international market,?she said.
The interim shoe measures, which came into effect in April, must be confirmed by EU ministers in October.
Mr Mandelson hopes to table his reforms by the end of the year. They would have to win the approval of fellow commissioners and then a majority of member states to become law.
