EU plans temporary duty on Chinese glossy paper

Published 10/25/2010, 07:40 AM
Updated 10/25/2010, 07:44 AM

* EU executive plans duties of up to 39.1 percent - sources

* Indonesian paper giant APP faces lowest tax -sources

* Plan reflects pressure on paper industry, Chinese growth

* Anti-dumping duties must be in place by Nov. 17

BRUSSELS, Oct 25 (Reuters) - The European Commission plans import duties of up to 39.1 percent on Chinese-made glossy paper it says is being dumped on the EU market, escalating trade tensions with China, EU diplomats said on Monday.

Indonesian paper giant Asia Pulp and Paper (APP), which exports paper to Europe from China through two subsidiaries, will be the only company to be granted a lower rate at 19.7 percent, diplomats told Reuters.

The EU has started a raft of investigations into booming imports from China -- boosted by a weak yuan -- possibly resulting in new import duties and sparking concerns over growing protectionism.

prompted the Commission to start the two investigations.

APP is part of the Sinar Mas business empire founded by Indonesia's Widjaja family. (Reporting by Juliane von Reppert-Bismarck; Editing by Rex Merrifield and Jon Loades-Carter)

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