News Article

EU Starts Review of Anti-Dumping Measures on Regular Bicycle Imports from China

Laws & Regulations

BRUSSELS, Belgium – Yesterday the European Commission officially announced in the EU Official Journal the “Notice of initiation of an expiry review of the anti-dumping measures applicable to imports of bicycles originating in the People’s Republic of China.” These measures are to expire tomorrow, 6 June 2018. During the expiry review period, which takes up a legally fixed term of 9 months, the current 48.5% anti-dumping rate on regular bicycles imported from China will stay in place.

EU Starts Review of Anti-Dumping Measures on Regular Bicycle Imports from China
EU Commission’s review will be based on ‘new methodology’ which bars Brussels from branding China a ‘non-market economy.’ – Photo Bike Europe

Anti-dumping measures on regular bicycles imported from China are in place for 25 years. The first measure became effective on 9 September 1993. The current measures will stray in place up to March 2019; during the 9 months investigation period. By then the European Commission has to announce its decision. If the Commission agrees to an extension of the measures they will stay in place for another term of 5 years.

New review investigation

This time the review investigation conducted by the European Commission will be different compared to its previous ones. That’s because the rules on dumping proceedings have changed. This time around, the Commission will have to conduct a new investigation based on its “new methodology” which bars Brussels from branding China a “non-market economy.” Instead, the Commission has said it will consider “significant distortions” in China’s raw material prices, land, energy and capital.

That such distortions are taking place in China has already been demonstrated by the European Commission. It did that in its recently published AD643 document on Market Economy Treatment of Giant China. This company and its subsidiaries were refused Market Economy Treatment due to such distortions as well as the finding of interference of the Chinese State in the company’s operations.

‘Sufficient evidence’

In its Notice of Initiation it is said “The Commission considers that there is sufficient evidence … tending to show that, due to significant distortions affecting prices and costs, the use of domestic prices and costs in the country concerned is inappropriate.” This would warrant the use of analogue prices, possibly from

EBMA not worried

Moreno Fioravanti, Secretary General of the European Bicycle Manufacturers Association (EBMA) which lodged a request with the European Commission in early March 2018 to extend EU anti-dumping measures on conventional bicycles from China, told the widely respected news agency POLITICO that he was not worried about the use of the new methodology. “To look for dumping and subsidies in China is like looking for water in the ocean,” he said.

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