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EU to impose extra tariffs on China aluminium foil over subsidies -Breaking


© Reuters. FILEPHOTO: EU Flags fly at the European Commission Headquarters in Brussels on October 2, 2019, Belgium. REUTERS/Yves Herman/File Photograph

BRUSSELS (Reuters), – After the European Commission discovered that Chinese producers were receiving unfair and excessive subsidies, the EU journal announced Wednesday that it would increase tariffs for aluminium foil imported from China.

Tariffs for a particular thin aluminum converter foil will be in force from Thursday. They range between 8.6% and 18.2%. These tariffs are on top of the existing antidumping duties, which can vary from 6.0% to 28.5%.

After receiving a complaint by EU producers, the European Commission conducted an investigation and found that China identified aluminum foil as a major industry. It then intervened using the market’s free will to support the sector.

The state subsidy consisted of preferential financing, export credit insurance and grants. Also, government provided land use rights and electricity at lower market prices.

China’s share in EU aluminium foil markets grew from 18% to 24% in 2017 to 24% in 2019, with prices dropping. Other countries imported very little.

Six EU producers were involved in the complaint, including Carcano Antonio Italy, Eurofoil Luxembourg, and Hydro Aluminium Rolled products based in Germany.

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