EU Hits India With Wire Tariffs to Counter Subsidies, Dumping

The European Union imposed tariffs as high as 27.8 percent on stainless-steel wires from India, saying EU producers such as Ugitech SA of France have been hurt by Indian subsidies and price undercutting.

The duties punish Indian manufacturers including KEI Industries Ltd. and Mukand Ltd. for allegedly receiving trade-distorting government aid and selling the wires in the 27-nation EU below cost, a practice known as dumping.

EU producers that also include Germany’s Hagener Feinstahl GmbH, Italy’s Rodacciai SpA and Spain’s Inoxfil SA suffered “material injury” as a result of subsidies and dumping by Indian competitors, the European Commission, the bloc’s trade authority in Brussels, said in two decisions today in the Official Journal. The duties, to take effect tomorrow, are for as long as six months and may be prolonged for five years.

Indian exporters of stainless-steel wires increased their combined share of the EU market to 17.9 percent in the 12 months through March 2012 from 12.8 percent in 2009, said the commission. EU manufacturers’ share of their market fell to 62.9 percent from 67.6 percent over the period, according to the commission, which said employment in the bloc for stainless-steel wire production totaled 1,747 people in the 12 months through March 2012.

The duties to counter subsidies and dumping are the preliminary outcome of probes that the commission opened last August in response to complaints against India by European steel industry lobby group Eurofer.

The provisional anti-subsidy duties are as high as 4.3 percent and the provisional anti-dumping levies are up to 27.8 percent, depending on the Indian producer. EU governments, acting on commission proposals, must decide within four months whether to turn the anti-subsidy duties into “definitive” five-year levies and within six months whether to apply definitive anti-dumping measures.

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