ETRA Objects To Dumping Duties for Vietnam

GHAND, Belgium (May 17) - In response to the Commission’s General Disclosure Document, the European Two-Wheelers retailers’ Association (ETRA) has lodged a strong protest against the measures that will be proposed against bicycle imports from Vietnam. In ETRA’s view it was unjust for the Commission to assess Chinese and Vietnamese bicycle imports cumulatively. It is precisely that assessment that has allowed the Commission to conclude that the bicycle import from Vietnam is being dumped. The Commission itself has found that Chinese bicycles are sold mainly in high volume sales channels. Moreover, the Commission confirmed in the General Disclosure Document that the sampled Community producers mainly compete in the same sales channels. The bicycles imported from Vietnam into the European Union however are to a very large degree sold by specialist dealers. ETRA also pointed out that a separate assessment of the Vietnamese import would have allowed the Commission to find that the strong increase of bicycles imported from Vietnam was to a large extent the result of Community producer Raleigh closing down their UK production facilities. In 2003, over 43% of the Vietnamese import into the EU was sold to the UK. Compared to 2002, the EU import rose with 645,296 bicycles. The UK accounted for more than 75% of that increase. If the application of anti-dumping duties should result in a sudden decline of Vietnamese imports into the EU, that may well result in a restriction of competition, says ETRA. In those countries, which import branded and private label bikes, such a decline cannot be compensated at short notice. Importers cannot move from one subcontractor to another just like that. According to the European IBD association, dealers cannot switch from one brand to another that easily. As a result, a number of jobs in the IBD-sector will be in the balance whereas consumers will be confronted with a restricted offer, higher prices and less choice with regard to price range. As for the envisaged measures against Chinese bicycle imports, ETRA applauds the Commission intention to propose 48.5% duty for a new period of 5 years. (MH)