Italian Industry Discusses the 'Chinese Threat' and EU Dumping Duties

BOLOGNA, Italy (February 17) - Over one hundred Italian decision makers recently met in Bologna to discuss: 'The threat represented by the Chinese industry to both Italian bicycles and bicycle parts makers'. This remarkable meeting was organized by Moreno Fioravanti of Vuelta, Andrea Carraro of Carraro Cicli and Pietro Boselli of Safety Bicycle, and had the current 30.6% EU anti-dumping duty on Chinese bicycles and components as its main topic on the agenda. The EU dumping tariffs on complete bicycles, frames and bicycle parts originating from China are currently running for a second five years period that will end in July 2005. As a special guest Brian Montgomery, chairman of the European Bicycle Manufacturers Association (EBMA), held a speech "starting with coverage and statistics of the size (according to EBMA 70 million bicycles per year), the recent growth of exports (up 54 %) and the huge and growing proportion of the world consumption of bicycles which is being supplied by China". To make it clear how serious the case is, Montgomery recalled what has happened with the Japanese and US-American bicycle industries: the US industry disappeared, the Japanese all but a few gems. The EBMA chairman wanted his audience to understand the gravity of the situation for Italy and for the entire EU market. If the anti-dumping tariffs won't be renewed in 2005, Montgomery foresees the disappearance of the European bicycle industry just like in the USA and for the best part in Japan. And: "When the bicycle industry is gone, the parts makers will follow soon. Chinese producers won't buy their parts in Europe." The gathering concluded that there is a serious need for action right now, and definitely not for a last-minute action in 2005. After a fierce discussion, a program and an adhoc pressure group for political lobby was proposed.(JB)