WRITTEN QUESTION P-3807/98

by Maartje van Putten (PSE) to the Commission

(7 December 1998)

Subject: The alleged dumping on the European market of steel from countries affected by the economic crisis

In the light of the international financial crisis and the devaluation of various national currencies in the countries affected, resulting in falling prices of products from those countries compared with the prices of products from European countries, I should like answers to the following questions:

1. Has the Commission received a complaint from the European steel industries operating in "Eurofer" concerning the possibility of steel being dumped on the European market by (companies from) countries affected by the economic crisis and, if so, can the Commission state the precise nature of the complaint?

2. What is the Commission's attitude towards the agreements made in early November 1998 in the Steel Committee of the OECD on avoiding protectionist measures in response to the supply of cheap steel from (companies in) countries suffering from the international financial crisis?

3. What is the Commission's attitude towards the final declaration of the Ministerial Conference of the WTO in May in Geneva which said that keeping markets open was a key element in a sustainable solution to the international financial crisis and that protectionist measures should therefore be rejected?

4. Will the Commission take account of the positions adopted by the OECD and the WTO in handling the complaint from "Eurofer" and, if so, in what way?

Answer given by Sir Leon Brittan on behalf of the Commission

(13 January 1999)

1. The Commission has, indeed, received an anti-dumping complaint concerning hot rolled coils of steel. As required by the Basic anti-dumping regulation (EC) 384/96(1), the Commission is examining whether the complainant has provided sufficient prima facie evidence regarding the existence of dumping and the material injury resulting. Six exporting countries are involved. According to the provisions of the Basic anti-dumping regulation, the Commission, after consultation of Member States, has 45 days from the lodging date to decide whether or not an anti-dumping investigation is warranted.

2. The Commission endorses the statement agreed at the Organisation for economic cooperation and development (OECD) steel committee in November. This stressed the need for all parties to act responsibly, for steel exporting countries to ensure fair trading practices, and for steel importing countries to refrain from disproportionate or hasty responses to pressures on their steel markets.

3. In accordance with the World trade organisation (WTO) ministerial declaration in May 1998 the Commission is fully committed to maintaining current levels of market access while pursuing further liberalisation. The Commission considers that the expansion of trade within a rule-based system will help economies recover from current economic difficulties. In this context, trade defence instruments are necessary to remedy specific situations, as provided in WTO rules.

4. The Eurofer complaint will be assessed on its own merits as is the case with all anti-dumping complaints. This means, in practice, that the Commission will analyze whether there is prima facie evidence supporting the allegations of dumping practices on the one hand and of material injury resulting on the other. If an anti-dumping investigation were to be initiated, it would be conducted in accordance with the Community basic anti-dumping regulation which is in full conformity with the WTO anti-dumping agreement.

(1) OJ L 56, 6.3.1996.