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UPDATE 1-EU to end duties on Chinese steel pipes - document

Published 07/10/2009, 07:38 AM
Updated 07/10/2009, 07:40 AM
AQA
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* EU plans to terminate duties on Chinese steel, iron pipes

* 27 national trade officials to vote on plan on July 28

* Chinese goods account for around 50 pct of EU market

(Adds details, background)

By Darren Ennis

L'AQUILA, Italy, July 10 (Reuters) - The European Union plans to terminate anti-dumping duties on imports of Chinese steel pipes and iron tubes, which account for around 50 percent of the EU market, a document seen by Reuters said.

The European Commission, which oversees trade policy for the 27-nation bloc, will make the proposal at a meeting of national trade officials on July 28, the Commission document showed.

The tariffs, which are "provisional" duties lasting six months, range from 15 to 25 percent.

The decision by the Commission will go some way towards easing increased tensions between the EU and China over Beijing's trade policies, which have led to a raft of measures by Brussels on the grounds of protecting European industry.

Brussels imposed the duties on imports of "certain seamless pipes and tubes of iron or steel", mainly used in construction, in April following a complaint from the EU steel industry.

European producers accuse China of giving its own steel companies an unfair advantage by restricting exports of raw materials and driving down their domestic costs, and subsidising Chinese manufacturers.

Trade disputes between Brussels and Beijing are on the rise since the EU's trade deficit with China has ballooned. The EU has imposed a number of anti-dumping tariffs on imports of Chinese goods ranging from shoes to steel products.

EU exports to China rose to 78 billion euros ($109 billion) in 2008 from 26 billion euros in 2000, while imports from China rose to 248 billion euros from 75 billion euros over the same period.

The EU and the United States launched action last month at the World Trade Organisation over Chinese export restrictions on around 10 industrial raw materials.

Beijing has denied distorting competition. (Editing by Dale Hudson)

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