EN Official Journal of the European Union CE 88/535

(2004/C 88 E/0547)

WRITTEN QUESTION P-0788/04

by Giacomo Santini (PPE-DE) to the Commission

(5 March 2004)

Subject: Importation of ‘dumped’ copper sulphate

The production of copper sulphate is becoming increasingly important throughout the world for use in animal feeds, agricultural treatments (phytosanitary protection of vines) and in electronics and galvanising. European production has seen a significant downscaling in recent years, owing to massive imports of sulphate from third countries (Uzbekistan, Ukraine, Russia, Macedonia, Serbia and China), and is now on the verge of crisis. Europe's leading producer, which is based in Italy (Manica SpA of Rovereto), maintains a presence on the market along with a few other surviving companies in Italy, Spain and France. The main cause of the crisis is the clear ‘dumping’ by the third countries mentioned above of an excessive quantity (50 000 to 60 000 tonnes per annum) of microcrystalline copper sulphate (known as ‘snow’). This quantity accounts for over two thirds of the European market. Serious concerns also stem from the low quality of extra-Community production, which poses a threat to animal health and the environment. Regulation EC 133/2003 (1) recently introduced further stringent limitations on the use of certain salts, including copper salts, in animal feeds, for reasons relating to defecation by pigs on land and in watercourses. This restriction is further damaging to European exports.

Considering that these circumstances could lead to the closure of the few European facilities that remain, with serious consequences for product quality and for employment, could the Commission indicate:

1. What it will do to curb these dumped imports with customs duties, on the basis of Council Regulation 384/96 (2);

2. What initiatives it will take to protect the internal market, European producers and product quality;

3. What checks it will run to verify the suspicions surrounding the illegal or scarcely transparent origin of a large proportion of the copper sulphate imported from those countries?

Answer given by Mr Lamy on behalf of the Commission

(1 April 2004)

1. The Honourable Member can rest assured that the Commission is always ready to protect the European industry from any imports under unfair and injurious conditions provided that the applicable requirements of Community's international obligations and EU law (3) are met. According to the relevant rules, the implementation of anti-dumping measures requires a formal procedure starting with a complaint lodged on behalf of the Community industry either in its totality or a major proportion thereof. It is followed by an investigation carried out by the Commissions' Trade Defence Service and may lead to a proposal of anti-dumping measures (e.g. an anti-dumping duty) by the Commission which has to be adopted by the Council of Ministers. The Commission is ready to provide the relevant Community producers with any information and help requested to enable them to lodge such a complaint. In this respect it would like to draw the attention of the Honourable Member to its web-site (http://europa.eu.int/comm/trade/policy/dumping/compl.htm) where a ‘Guide on how to draft an anti-dumping complaint’ can be found.

2. With regard to the protection of the EU market and the European producers, the Commission will take any appropriate initiative as described in the answer above. However, trade defence based on Council Regulation (EC) No 384/96 does not aim for the protection of product quality. The use of copper sulphate in plant protection is governed by Council Directive 91/414/EEC (4). This provides that a substance can only be used if the Commission, on the basis of the evaluation of a dossier, has adopted a Directive inscribing the substance in Annex I to Directive 91/414/EEC. For substances that were already on the market in 1993 (including copper sulphate), national rules continue to apply pending the Commission Decision. A dossier that was submitted by industry during 2002 in support of copper is currently being evaluated at Community level. It is expected that a decision will be taken in or before 2006. Should the decision be negative, then all uses of copper in plant protection will have to be withdrawn. Should the decision be positive, it will include minimum technical standards for purity of copper (including copper sulphate) to be used in plant protection. It will be binding throughout the Community.

3. As the Honourable Member will certainly be aware, there are at present no anti-dumping duties imposed on copper sulphate. Therefore, there is no apparent justification for suspecting fraudulent trafficking. In order for anti-dumping duties to be imposed, the Community industries affected by this situation would first have to lodge an anti-dumping complaint as set out in the first part of this reply.

(1) OJ L 22, 25.1.2003, p. 18.

(2) OJ L 56, 6.3.1996, p. 1.

(3) Council Regulation (EC) No 384/96 of 22 December 1995 on protection against dumped imports from countries not members of the European Community as last amended by Council Regulation (EC) No 461/2004 of 8 March 2004, OJ L 77, 13.3.2004 (the ‘Basic Regulation’).

(4) Council Directive 91/414/EEC of 15 July 1991 concerning the placing of plant protection products on the market OJ L 230, 19.8.1991.