WRITTEN QUESTION E-3398/03 by Stefano Zappalà (PPE-DE) to the Commission. Dumping by China on the world copper market.
Date: 2003-11-17
Institutions: European Parliament, Provisional data
Subjects: China, copper, dumping, import policy, processing industry, protectionism

27.3.2004

EN

Official Journal of the European Union

C 78 E/809

The former typically include the economist(s) following the Member State in question and may or may not
include the responsible Head of Unit. They last between one and three days. The programme typically
includes meetings with the finance ministries, the Central bank and forecasting institutions, at operational
and middle management level.

The latter are typically headed by a Director (or the Director-General) and include the responsible Head of
Unit and the economists following the Member State in question. They last between one and two days. The
programme typically includes meeting with the finance ministries at senior management level.

It needs to be noted that the resources and the contacts outlined above are supplemented, as far as the
Commission is concerned, by the resources in the ‘horizontal’ (non-geographical services) and the contacts
with officials from Member States on the occasion of official and unofficial meetings taking place at the
seat of the European institutions.

3.
The Commission is continuously looking for ways to improve its monitoring of the economies of
Member States. Concerning missions in particular, the Commission Communication on strengthening the
co-ordination of budgetary policies (1) mentions explicitly the intention to organise more frequent and
comprehensive missions.

(1) COM(2002) 668 final.

(2004/C 78 E/0858)

WRITTEN QUESTION E-3398/03

by Stefano Zappalà (PPE-DE) to the Commission

(17 November 2003)

Subject: Dumping by China on the world copper market

China has introduced protectionist arrangements for subsidising its copper industry, allowing it to operate
on the world markets in such a way as to obtain undue and unfair advantages.

In particular, firms importing secondary raw materials (scrap) are directly reimbursed 30 % of VAT, while
the remaining 70 % goes to a state company grouping the five main enterprises in the sector.

This unfair advantage is being used to create a monopoly on the main world markets in raw materials, at
prices which are so high that other potential buyers cannot pay them.

In just four years, from 1998 to 2002, exports of copper scrap and alloy from the EU to China rose from
70 000 to 246 000 tonnes per annum.

The EU, which lacks copper ore of its own, is losing its copper scrap and alloy (cid:1) the only resource
available to it (cid:1) thus ensuring that
its manufacturing industry will suffer a dramatic decline in
competitiveness leading to a reduction in activity and job losses.

These distortions are affecting the refining industry, which produces raw materials similar to those which
we otherwise have to import, and, even more so, the sector producing semi-finished products, which
relies, for over 50 % of its requirements, on the availability and accessibility in cost terms of scrap
originating in the EU.

It is disappointing that the Commission, which has for a long time now been made aware of these
circumstances by the professional associations and, more recently, also by Europa Metalli, has still not
responded and has taken no steps to re-establish fair market conditions.

Can the Commission state what urgent action it will take against China’s protectionist measures on the
copper market, and, in particular, what measures it intends to take to secure an end to China’s direct and
indirect subsidies to its industry, and in particular the reimbursement of VAT?

C 78 E/810

Official Journal of the European Union

EN

27.3.2004

Answer given by Mr Lamy on behalf of the Commission

(15 December 2003)

The Commission is fully informed concerning the problems facing the European copper-processing
industry with regard to supplies of secondary raw materials (i.e. scrap metal). The industry has been doubly
hit by (i) the increasing scarcity of the products on the international markets, due primarily to the export
restrictions imposed by Russia and certain other newly independent states and (ii) the considerable
pressure on prices for those products as a result of strong demand from a number of Asian countries,
particularly China.

To promote the development of its copper industry, China introduced in 2000 a scheme whereby part of
the VAT paid on imports of scrap copper is refunded. The scheme was extended, with some alterations, in
2003. The European industry feels that this advantage enables Chinese operators to finance an aggressive
policy of buying up a large share of the scrap for sale on international markets.

The Commission has taken account of the Community industry’s concerns and has in recent months raised
the issue with the Chinese authorities on a number of occasions in both bilateral and multilateral talks.
It has asked for detailed information on VAT refunds through the World Trade Organisation’s ‘Transitional
Review Mechanism’ on China’s trade policy. The Commission will use this information to assess whether
the system is compatible with China’s international obligations.

However, the Commission has not, as yet, noted a significant increase in imports of corresponding
processed goods from China. Furthermore, the European industry has not submitted any anti-dumping or
anti-subsidy complaint to the Commission, which cannot initiate the corresponding procedures itself,
except in very exceptional cases.

The Commission, remaining in close contact with the Community industry, is monitoring this matter
closely with a view to restoring normal competitive conditions.

(2004/C 78 E/0859)

WRITTEN QUESTION E-3408/03

by José Ribeiro e Castro (UEN) to the Commission

(17 November 2003)

Subject: Illegal immigration (cid:1) German Consular Services

The media have reported that German consular services in countries like Ukraine, Moldavia and Russia
have been accused of being the principal culprits for the increase of pockets of illegal immigrants from
Eastern Europe in Portugal, by the Portuguese Foreigners and Frontiers Service, General Labour
Inspectorate and the High Commissariat for Immigration and Ethnic Minorities.

According to the report drawn up by these Portuguese institutions, entitled ‘Immigration from the East (cid:1) a
new fact, opportunities and challenges’, the negligence of the German consular services has enabled Eastern
European citizens to enter the Schengen area, as tourists, and then stay on as illegal immigrants.

That this is the truth of the matter is confirmed by the survey carried out by Coimbra University’s Social
Studies Centre, using 735 Eastern European immigrants, which has highlighted the fact that six out of ten
entered Portugal with visas issued by the German authorities.

What information does the Commission have as to the allegedly negligent actions of the German consular
services in the countries of Eastern Europe?