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Danes claim EU anti-dumping law hurting consumers

06 Oct '05
2 min read

EU anti-dumping policy harms the economy and protects big producers at the expense of consumers, according to a new Danish study - but the European Commission believes the measures will save European industry in the long term.

The World Trade Organisation (WTO) brought in anti-dumping rules in 1994 in an attempt to open up international markets while preventing firms from selling goods at a lower price abroad than they do at home.

The practice, also called predatory pricing, can be used to build market share in the export destination and drive local producers out of business.

Under EU law, the commission can impose tariffs on dumped imports, provided that the duties would not harm overall community interest.

Trade hit the headlines last month as millions of Chinese jumpers piled up in ports after Brussels imposed quotas to shield European manufacturers.

But with permanent quotas becoming a thing of the past under the WTO, some economists fear the EU will turn to anti-dumping laws to shut out foreign competition.

Brussels has already launched 17 anti-dumping probes and imposed 14 measures in the first six months of this year compared to 24 probes and measures in 2003 and 2004 combined, heavily targeting China on shoes and plastic bags.

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