05 July 2006 17:06 [Source: ICIS news]
LONDON (ICIS news)--European Commission plans to impose anti-dumping duties on Chinese and Thai polyethylene (PE) bags were on Wednesday condemned by the British Retail Consortium (BRC) as misguided and unlikely to benefit significantly European producers.
“The EC said they have done an analysis of production costs of PE bags and export prices but we see no evidence that these bags are being sold for less than the cost of production,” said a Richard Dodd of the BRC.
The BRC represents major UK buyers of plastic bags including leading supermarkets such as Tesco, Asda and Sainsbury.
According to Asian converters, the EC is likely to impose from 1 September a 10-12% duty on Chinese imports while Thai producers would pay 5-6% in punitive duty. Plans for anti-dumping duties on Asian PE bags were confirmed on Wednesday by an EU trade spokesman.
“They are doing it to protect the production of PE bags in the European Union but buyers won’t switch to EU suppliers because they don’t have the resources to produce these types of bags on anywhere near the same scale,” said Dodd.
“Making it more expensive for supermarkets to buy bags will raise consumer costs, which is in no-one’s interest,” he added.
In February, BRC Brussels director Alisdair Gray estimated a 20% anti-dumping duty imposed on China would cost the UK’s four largest supermarkets £60m (€87m) a year. Based on his calculations, a 12% duty would cost them around £36m a year.
The British Retail Consortium (BRC) forms part of EuroCommerce, which represents the retail, wholesale and international trade sectors of ?xml:namespace>
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