For the second time the EU imposed tariffs against China against subsidies, targeting the nation’s steel to help producers in Europe such as ArcelorMittal.
The EU duties which could reach 44.7% are meant to punish Chinese exporters of organic coated steel, which is used in domestic appliances and construction, for receiving trade-distorting government aid. Among the companies which have to face the new 5-year import levies are Wuhan Iron & Steel Co. and Angang Steel Co.
The majority of EU’s tariffs are aimed at exporters from China who sell goods in the European market below cost, a move which is known as dumping. Yesterday, March 11th, the EU imposed anti-dumping duties for 5 years on Chinese organic coated steel lowering the rates, which reach 0 in some cases.
The 5-year levies against dumping and subsidies will take effect by March 22nd, after being published in the EU Official Journal. European manufacturers of coated steel, among them ThyssenKrupp AG and Voestalpine AG, complained of ‘material injury’ caused by the subsidies to Chinese competitors and dumping by them.
In May 2011, the European Union imposed for the first time anti-subsidy tariffs against the Asian country by taxing imports of paper with levies as high as 12%.