Mandelson wins first round in China lightbulb fight
26 Jul 2007 17:41:30 GMT Source: Reuters
(Adds details, background) By William Schomberg BRUSSELS, July 26 (Reuters) - European Union trade chief Peter Mandelson narrowly won preliminary support from EU trade experts on Thursday for a controversial plan to axe anti-dumping duties on Chinese energy-saving lightbulbs. Mandelson has been backed by environmentalists who say the duties fly in the face of EU plans to fight climate change. Trade experts who see this as a test case said Mandelson's proposal suggested he was giving greater weight than in the past to the interests of European companies that produce or import goods from China to remain competitive. "A majority of member states indicated that they expected to be in a position to support the proposal," his spokesman Peter Power said after a meeting of the EU's Anti-Dumping Committee. "The outcome of the discussions puts the (European) Commission in a position to proceed with a formal proposal to end the duties." The proposal angered several EU countries which want provide their manufacturers with more protection against China and who suspect Mandelson of secretly changing the bloc's trade rules -- an accusation he denies. The show of support was a victory for Dutch electronics group Philips <PHG.AS> which fought hard for the elimination of the anti-dumping duties of up to 66 percent. But it came as a blow for German rival Siemens <SIEGn.DE>, which wanted to extend the duties for a further five years. Power noted both companies produced energy-saving lightbulbs in Europe but Siemens unit Osram imported fewer from China than Philips, suggesting the dispute was about commercial advantage. "NOT DONE YET" A trade diplomat said 10 of the EU's 27 countries backed the plan on Thursday and a further eight asked for more time, of which four said they would not oppose the proposal. Under EU voting rules, abstentions on anti-dumping issues are counted as votes in favour of a proposal, meaning the Commission received a show of support from 14 countries, or just over half of the bloc. The nine other EU states opposed Mandelson's plan, the diplomat said. But another diplomat said Germany, leading the opposition, could yet turn around swing voters among small EU member states. "It's not done yet," the second diplomat said. The Anti-Dumping Committee is due to consider a formal version of the Commission's proposal on Sept. 6, he said. Votes taken in the committee are not binding. But the positions of the EU experts are usually mirrored by ministers when a formal decision is taken. The Commission's German vice-president responsible for industry, Guenter Verheugen, has voiced concerns about job losses at Osram if the duties are scrapped. His spokesman said he would decide in September whether to back Mandelson's plan.
