50
dumping, then all appropriate countries as well. The BAFD agreed to oppose Anti For bolting products, whilst the
should be included. As it stands, if Dumping Duties and I ‘volunteered’ to proportion of European production is
industry players operating in China are lead our response, part of a wider higher, there are only a few volume
penalised, but neighbouring countries are European response led by EFDA and the producers of standard products and this,
not affected, then production will shift FDS. in the past, has not been sufficient for a
immediately. This was certainly the case healthy competitive market. A return to
for stainless steel fasteners, and will be Because the WTO does not yet recognise this situation would be highly
the same for carbon steel fasteners if PRC as a ‘market economy’, its domestic undesirable.
Vietnam, Thailand, Malaysia, Indonesia, prices are not considered valid in
Cambodia, etc. are exempted. calculating possible dumping. The Unfortunately, but not surprisingly,
complainants chose India as the country markets are already reacting to the
If the fastener industry simply shifts of reference, exaggerating the ‘domestic’ threat of Anti Dumping Duty even though
production to SE Asia - which it will - price and alleging dumping margins of
their application or level is undecided.
then the anti-dumping "tool" will have 90% to 195%. If duties were applied at
China costs are already rising rapidly due
one other potential unintended these levels product costs could easily
to increased costs of raw materials,
consequence: lower quality. Why? It has double or treble. The repercussions would
labour, energy, and shipping. However,
taken China several years to build a be horrendous, causing chaos in fastener
prices seem to be rising even faster,
reliable steel supply, tooling, knowledge, markets.
possibly because the Chinese are trying
etc. It will take time to build this
to anticipate Anti Dumping Duty and
infrastructure, although not as long as Few realistically believe that European
close the gap in the meantime. Market
before, because it will be the Taiwanese- manufacturers would take up the
forces appear to be rapidly resolving any
owned and Chinese-owned factories that volumes currently imported from China.
imbalance.
will continue to dominate Asian
Business would almost certainly migrate
production and supply.
to other low cost economies, probably in
The timing and level of any duties is
the Asia Pacific region. However, that
unknown, leaving individual companies to
The last issue is timeliness. Even if we
capacity does not exist in the short term
anticipate and try to mitigate any
agree that dumping took place, the
and the period of transition, whilst
decision – all of which leads to
environment has changed a lot in the
suppliers and importers adjusted, would
distortions of the normal market.
past two years. Penalties should have
create considerable uncertainty over
Provisional duties may be applied at any
been considered then. What the EU lacks
capacity, cost, quality and reliability of
time up to August, and would catch
in speed, basic macro-economics has
supply.
compensated. Exchange rates, Chinese
orders in the pipeline. Distributors and
tax policy, labour and commodity costs
customers with fixed price contracts have
One of the biggest concerns is the range
have all moved against Chinese
little idea how best to account for the
of products involved. While there is still
manufacturers. Factories were already
uncertainty of the next few months, or
significant European production of bolting
contemplating moving to neighbouring
how to ensure continuity of supply to
products, mainly in Germany and Italy,
countries and many have. Now if EU
their customers, without risking
the situation is very different for other
antidumping legislation finally makes its
potentially disastrous financial
tariff codes cited in the complaint. A
way over, it almost seems like an
consequences.
much lower proportion is made in Europe
anachronism - too late and merely icing
on the cake.
and is generally focused on the high
The investigation proceeds in its own
quality end of the market (aerospace,
rather mechanistic way and companies
German distributor
automotive and high performance
like our own invest substantial amounts
Name provided
brands) rather than standard/commodity
of time and resource cooperating with
product.
the investigators to establish the reality
Don’t talk to me about anti dumping
of a highly complex situation. However
duty. After giving me a quote our
It is very clear that the European
the biggest opportunity to influence the
supplier (an importer/wholesaler) then
manufacturers would neither want nor be
said that they could not accept our order
able to take on the volume of product
outcome, whatever technical answer on
for a full container because of this!
currently imported from China. Many
dumping and injury results, relates to the
European manufacturers declined to
issue of ‘Community Interest’. This is
Geoff Hopwood
support the complaint and it is telling
where everyone interested in, or likely to
Chairman, Owlett-Jaton & Vice
that the complainants represent less than
be affected by, the result needs to clearly
Chairman, British Association of
30% of European production.
express their views – by writing to
Fastener Distributors
political representatives, to national
As with many other products, imports
Departments of Trade (in the UK this is
The announcement of the an Anti
from China satisfy the demand for
the Department for Business, Enterprise
Dumping investigation triggered standard, high volume, commodity
and Regulatory Reform www.berr.gov.uk),
significant concerns amongst fastener products whereas European production
the national press and industry
distributors throughout Europe and a has concentrated on higher added value magazines. It is your business at stake -
chain of reactions, which no doubt will and special application quality products. don’t complain later if you haven’t made
continue through 2008 and maybe 2009 In many cases there is little conflict. any effort to argue the case!
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