Will the EU war on Chinese plastic bags halt?

21-Dec-05

The European Commission launched its plastic bag investigation after 30 EU manufacturers complained that Asian competitors were selling bags for export cheaper than they were sold in domestic markets. In July, the European Commission launched an investigation into the dumping of plastic bags by China, Malaysia and Thailand and impose tariffs. Supermarkets and clothing retailers worry that tariffs could add to their costs. In 1997, the EU imposed a 60% retaliatory tariff on plastic bags from India, accusing their manufacturers of dumping. Leading British retailers are protesting against the threat by the European Union to impose anti-dumping duties on plastic bags imported from China. Members of the British Retail Consortium (BRC) have urged the EC to resist calls from member states to impose protectionist barriers against imports of leather footwear and plastic bags. Accusing certain EU states of using protectionist measures as a shield against domestic reform, a letter states that retailers will bear the brunt of a policy that favours uncompetitive European producers at the expense of consumers and those producers who have adapted their businesses to meet the competitive challenge.