Dumping Complaint: More Than a Loss of Just Time and Money

PARIS, France-You almost have to read between the lines to gather from the European Bicycle Manufacturers Associations (EBMA) 21 January press release that the dumping complaint on frames and forks from Taiwan and China has been withdrawn. In this statement EBMA chairman Brian Montgomery continually links the dumping complaint on frames and forks from Taiwan and China to the dumping affair on the imports of complete bikes from China. As published in Bike Europe's December 1999 issue the European Commission is annoyed by this linkage and views it as 'playing politics' by the European bicycle industry. The European Commission treats the two dumping issues as completely separate cases. Nevertheless, the EBMA press release states that: "Dissatisfied with the effectiveness of the 1997 EU Regulation on the circumvention of Chinese bicycle anti-dumping measures the EBMA laid a complaint with the European Commission on the import on bicycle frames, forks and wheels to try to improve the situation in regard to extensive circumvention and unfair competition. Further and deeper reflection has brought the EBMA members to what they see as a more effective solution. The EBMA will therefore very firmly apply pressure to make sure that the circumvention rules are tightened and better observed and will approach the Commission to withdraw the complaint on frames, forks and wheels from China and Taiwan." The EBMA statement is even more strange when taking into account that on 12 January the European Commission sent out the formal notices that the measures against the imports of complete bikes from China would be continued. Moreover, already weeks ago it became clear for insiders like EBMA chairman Montgomery that these dumping measures would be continued. On our news pages more about the dumping measures against Chinese bikes. With the withdrawal of the frame dumping complaint an end has come to a procedure that has cost the industry more than time and money alone. With regard to the money, insiders estimate that the cost for the lawyers alone amount to about US$400,000. When taking into consideration the manpower involved in filling out the very detailed questionnaires from the European Commission, then the amount spent can be doubled or even tripled. Next to that, the dumping procedure on frames and forks also destroyed a great deal within the bicycle sector, destruction in the form of severed relations that will lead to stiffer competition. And that is something that the present market situation can really do without.