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UPDATE 1-EU proposes anti-dumping duties on Chinese candles

Published 03/25/2009, 06:33 AM
Updated 03/25/2009, 07:08 AM

* EU executive proposes long-term duties on Chinese candles

* Vote on tariffs of up to 60 percent on April 7

* Many European retailers oppose duties, Beijing angry

(Adds details, background)

By Darren Ennis

STRASBOURG, France, March 25 (Reuters) - The European Commission has proposed imposing long-term anti-dumping duties of up to 60 percent on imports of Chinese-made candles into the EU, sources with knowledge of the matter said on Wednesday. A panel of European Union anti-dumping experts is due to vote on the possible tariffs -- which would remain for at least five years -- on April 7, the sources told Reuters.

"The Commission has proposed extending the duties and there will be a vote on April 7," one source said.

In November, the EU executive -- which oversees trade policy for the 27-nation bloc -- imposed "provisional" duties for six months, irritating trade relations with Beijing and angering many European retailers such as Swedish furniture maker Ikea, Tesco and Metro.

Chinese candles account for around 300 million euros ($409 million) of the EU market, worth over 800 million euros per year.

If the so-called "definitive", or long-term, duties are backed by the EU's anti-dumping committee of national trade officials next month, the 27 EU governments will then be asked to approve the measures. (Editing by Dale Hudson)

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