development of the supply chain and market trends in eu market · development of the supply chain...

Development of the Supply Chain and Market Trends in EU market Dr. Volker Lederer President European Fastener Distributor Association 2016 GLOBAL FASTENER LEADERS SUMMIT Taiwan International Fastener Show, Kaohsiung 11 April 2016

Financial Situation 31 December 2012

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Introduction

Topics 1. EFDA objectives 2. antidumping measures on fasteners 3. market economy status of PR China 4. activities against circumvention

About EFDA • founded in 2000 as a European umbrella association of national fastener distributor

associations to represent their interests at European level • EFDA acts at EU and international level, national associations on national level • office moved to Berlin in 2013 • members: 6 national associations and a growing number of companies of European countries

where there is no national association to represent their interests


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EFDA Members


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1. EFDA Objectives

Objectives • bringing together the European fastener distribution sector • maintaining a global network with international partner organizations • promoting the value of fastener distributors as integrated logistics partners for European

industry • representing the distribution sector at European and global level • promoting free and fair trade in an open marketplace


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1. EFDA Objectives

Mission • See flyer

Network a


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1. EFDA Objectives

XXXX • January 2009: EU imposes ad duties (85,0 %) on certain iron and steel fasteners from Chin

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1. EFDA Objectives


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1. EFDA Objectives


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2. AD Measures: Stainless Steel Fasteners

Stainless steel fasteners • antidumping duties on imports from PR China (27,4 %), Taiwan (23,6 %), Philippines (27, 4%) • EU production of stainless steel fasteners continues to decrease • likely to expire on 7 January 2017


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2. AD Measures: Iron and Steel Fasteners

Certain iron and steel fasteners from PR China • antidumping duties on imports from PR China (74, 1%), Malaysia (74,1 %) • duties were to expire on 27 March 2020 • but were repealed on 27 February 2016 WTO Dispute Settlement • January 2009: EU antidumping duties of 85,0 % on certain iron and steel fasteners from China • China opposes measures • WTO: duties violate WTO rules • October 2012: EU reduces antidumping duties to 74,1 % • China opposes amendments • 12 February 2016: WTO requests EU to bring measures into conformity with WTO rules • China entitled to ask for retaliative measures on WTO meeting on 26 February 2016


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European Commission • checked if they could ‘repair’ the regulation and keep/reduce duties • concluded they could not ‘repair’ the regulation • repeal of antidumping duties with effect from 28 February 2016 Effect on European fasteners distributors • since 2009: massive market distortions due to inappropriately high duties • imports from China decreased by 98 % (2009-2013) • EU market share of fasteners from China was reduced from 26 to 0,5 % (2009-2013) • 2016: abrupt and complete repeal has similarly distortive effects as original imposition


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What to come? • European manufacturers plan new request for investigation (evidence for dumping and threat

of injury for European industry) • request needs approval by European Commission (injury concept) • investigation would take about one year’s time • definitive measures (antidumping duties) at the end of the investigation period • Commission may impose provisional duties during investigation • EFDA committed to free and fair trade


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3. Market Economy Status of PR China

Market Economy Status (MES) of China • debate whether WTO members, including EU, are obliged to treat China as market economy

from 12 December 2016 • dispute whether China Accession Protocol to WTO automatically leads to MES or not • relevant in anti-dumping investigations (no need for ‘analogue country’ to calculate normal

value for dumping margin if China is market economy) • granting MES to China would generally lead to lower ad duty levels European Union: 3 options • not grant MES to China and leave antidumping legislation and practice unchanged • grant MES to China • grant MES to China and strengthen provisions of European trade defence legislation


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3. Market Economy Status of PR China

EFDA • committed to free and fair trade • ad measures may be necessary to correct, but not distort, the competitive environment • MES of China would help avoid distortions by eliminating use of ‘analogue country’ system • must be clear that unfair trade practices are unacceptable


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4. Activities against Circumvention

EFDA activities • circumvention causes severe problems to both European manufacturers and importers in EU

and to industries of circumvention countries • working together with partners against circumvention, Taiwan: MOEA, TIFI, TFTA • MOEA July 2014: strict audit of the issuance of certificates of origins for fasteners exported to

the EU • MOEA August 2015: Special Goods Export Permit for Enterprises in Free Trade Zones • EFDA will continue with its efforts

Development of the Supply Chain and Market Trends in EU market Dr. Volker Lederer President European Fastener Distributor Association 2016 GLOBAL FASTENER LEADERS SUMMIT Taiwan International Fastener Show, Kaohsiung 11 April 2016

development of the supply chain and market trends in eu market · development of the supply chain...

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