WRITTEN QUESTION P-0289/99

by Paul Rübig (PPE) to the Commission

(10 February 1999)

Subject: Protection for the European granite industry

In recent years, firms quarrying granite in Europe, most of which are constituted as small or medium-sized undertakings, have had to cope with substantial changes. Competition on the domestic market, as well as from third countries, has resulted in average price falls of between 30 % and 40 % and has left a permanent mark on this sector.

The most recent developments have resulted in this sector being faced by new challenges; resolute action is required from the Commission and the Member States. China supplies large amounts of granite for road and bridge construction, as well as for buildings, and India does the same for tombstones. Because of the different level of wage costs, these imports are much cheaper than European products. What is more, these third countries protect themselves in part by means of export duties against the export of raw materials for processing.

What measures has the Commission taken to date with a view to counteracting this trend? How does it intend to react to the new situation? Will it take anti-dumping measures?

Answer given by Mr Bangemann on behalf of the Commission

(29 March 1999)

The Commission is closely monitoring developments as regards the trade in granite products.

Indeed, India and China are two countries that are known for their massive granite exports to the Community, whether in the form of raw or processed products. In 1997 those two countries accounted for, respectively, 63 % of the raw granite and 21,5 % of the processed granite imported into the Community. As compared with the imports from those two countries in 1995 processed-granite imports have increased by 85 %. Other countries such as Brazil and South Africa are also major sources of processed granite. All of the granite imported into the Community represented 42 % of identifiable Community consumption in 1997 (44 % in 1993). However, an initial analysis of the statistical data drawn from the Comext base on intra-Community trade in granite has shown that the pressure on prices referred to by the Honourable Member would seem not to be confirmed. Thus the Comext data concerning the processed granite traded at intra-Community level point to an average unit price of EUR 700 per tonne in 1997 as compared with EUR 723 per tonne in 1995, or in other words a drop of roughly 3 %.

The Community offers significant potential as regards extra-Community granite exports of all the qualities involved. In 1997 1,1 million tonnes were exported (representing 20 % of Community production) i.e. an increase of 14 % as compared with 1995. Of that total 54 000 tonnes were exported to China and India (+600 % as compared with 1995). Exports toward those two countries, more particularly of processed granite products, are subject to high customs duties. Thus, in 1998, China and India applied basic rates of 25 % and 40 % respectively to the latter.

Several means of reducing those tariff barriers are becoming available to the Commission. A substantial reduction in the tariff peaks and the removal of export taxes are Commission priorities as part of the negotiations concerning the accession of China to the World Trade Organisation (WTO). In the case of India, which has been a member of the WTO since 1 January 1995, it will be a matter of turning the next round of multilateral negotiations to account.

The Commission does not in general launch any anti-dumping procedures on its own initiative in order to deal with aspects of dumping. A survey intended to determine the existence, extent and effect of any alleged dumping will be conducted by the Commission following a complaint made in writing by any natural or legal person or any association not having a legal personality but acting on behalf of the Community's industry. Any such complaint must contain items of proof as regards the existence of dumping, any disadvantage suffered by the Community's industry and any causal link between the imports allegedly involved in dumping, and the alleged disadvantage. The complaint may be sent to the Commission or a Member State which will pass it on. The Commission will then examine whether the information contained in the complaint justifies any anti-dumping procedure.

The legal bases consist of (a) Council Regulation (EC) 384/96 of 22 December 1995 on protection against dumped imports from countries that are not members of the European Community (basic regulation) and (b) by Council Regulation (EC) 2331/96 of 2 December 1996 amending Regulation (EC) 384/96 on protection against dumped imports from countries that are not members of the European Community(1) and Council Regulation No 905/98 of 27 April 1998 amending Regulation (EC) 384/96 on protection against dumped imports from countries that are not members of the European Community(2).

(1) OJ L 317, 6.12.1996.

(2) OJ L 128, 30.4.1998.