Bloomberg reported that European Union has terminated the threat of tariffs on steel tubes from Turkey, Ukraine and Belarus after the recession prompted EU producers to withdraw a complaint alleging price undercutting.
As per report, EC closed an inquiry into whether Turkish, Ukrainian and Belarusian exporters of welded tubes, pipes and hollow profiles sell them in the 27 nation EU below cost, a practice known as dumping. The goods, also called hollow section, are used by the construction industry as well as in ships, cranes, trucks, farm equipment, metal furniture, windows and toys. EU producers include the UK's Corus Group, Italy's Marcegaglia and Spain's Condesa Fabril.
It may be noted that, on November 13th 2008, the EC initiated the antidumping proceeding with regard to imports of welded tubes, pipes and hollow section, originating in Belarus, Turkey and Ukraine. The proceeding was initiated following a complaint lodged on September 29th 2008 by the Defense Committee of the Welded Steel Tubes Industry of the European Union. The complaint contained prima facie evidence of dumping of hollow sections originating in the countries concerned and of material injury resulting wherefrom, which was considered sufficient to justify the initiation of a proceeding. The investigation of dumping and injury covered the period from October 1st 2007 to September 30th 2008.
By a letter dated June 3rd 2009 addressed to the EC, the complainant formally withdrew its complaint. According to the complainant, this withdrawal was prompted by the fact that the current market situation for the EC industry differs significantly from the market situation in which the complaint was filed, given that the real and apparent demand has recently collapsed in the EU and this has also led to a decline in imports.
In this respect it is noted that the analysis of the current situation with respect to the product concerned and any possible new investigation in the future do not put into question the complainant's action to withdraw. Therefore, the EC considered that the present proceeding should be terminated since the investigation had not brought to light any consideration showing that such termination would not be in the Community interest.
(Sourced from www.bloomberg.net)
