The storm of fasteners is not over: manufacturers will face EU disputes

The EU may launch a "re-review" of fasteners imported from China, even if the World Trade Organization ruled that the EU's high tariffs and illegal Chinese goods, an informed source told the "China Daily."

Yang Feng, Danya, deputy secretary-general of the Jiaxing Import and Export Chamber of Commerce also stated that the Chinese government is concerned that the EU may not cancel anti-dumping duties on imports from China as soon as possible. It is considering drafting documents to urge the EU to do so.

Yang was a senior official of the Jiaxing Fasteners Import & Export Company Association. Representatives of the industry recently participated in the meeting between the Ministry of Commerce.

In mid-July, the WTO rejected the EU's appeal, claiming that China is dumping fasteners on the European market. It ruled that the EU's high anti-dumping duties are free to violate global trade laws.

In January 2009, the European Union levied anti-dumping duties of 26.5% to 85% on Chinese fasteners for five years. On July 31st and 2009, China submitted the case to the WTO's dispute settlement mechanism. This is the first time China has responded to the EU.

China is the world's largest producer of screws, nuts, bolts and washers, and the EU is the main destination for its fasteners. In 2010, the annual export value of EU fasteners reached 6 million U.S. dollars.

Although companies in the fastener industry have welcomed the WTO ruling and believe that they can resume exports to the EU, Yang Jiechi said that recently, things may not be as smooth as expected.

"Domestic manufacturers prioritize exports and improve quality" because there is a "possibility that the EU will launch a new round of review and investigation of fasteners imported from China," she said.

The WTO ruling on the EU fasteners case took effect on July 28, it usually takes 10 to 15 months for the country to amend the rules and withdraw anti-dumping duties. However, the EU is "very likely not willing to do so, delaying the enforcement or partial implementation of WTO rulings," Yang said.

For fastener manufacturers, too. Taking root, the director-general of Pinghu Long Fastener Co., Ltd. said: "The WTO ruling is undoubtedly a victory for China, but we will pay close attention to how it is carried out."

Experts said that while the European debt crisis is spreading, more trade remedy cases and other measures for Chinese imports will be initiated by the group in the coming months.

The European Commission is a set of introductions to China's imports of baths, kitchens and paving slabs, worth 275 million euros ($3.94 million) each year, and the duty to receive EU trade support for five years, the largest punitive import tariff 69.7% of diplomats Reuters reported on Tuesday.

China's bicycle and bicycle parts are expanding until the current anti-dumping tariff of up to 48.5% in 2016.