EU Intends to Review Tariffs on Chinese Bicycles

Forex News

The EU producers fear that an influx of Asian imports could destroy their industry. The European Bicycle Manufacturers Association (EBMA) has instigated a new review by the European Commission into the existing 48.5% anti dumping measures on bicycles imported from China, Indonesia, Malaysia, Sri Lanka, Tunisia, Cambodia, Pakistan and the Philippines.

The European Commission intends to review the existing measures, which were due to expire June 8th. In the meantime, existing measures will remain in place for the duration of the investigation, anticipated to run until early September 2019. Should the measures be renewed, then typically another period of five years of tariffs applies.

The EBMA stated that bicycle exports from China to the EU increased from 1,437,954 bicycles in 2016 to 1,658,057 in 2017. This rise, it says, is largely down to “low quality” bike share bikes.

The Chinese data showed that Chinese-made bicycle exports to the European Union increased by 15% last year to 1.66 million units despite the duties, while EU bicycle sales fell by 6%. New trade measures of the EU could increase trade tensions between Brussels and Beijing at a time when both are facing protectionist measures from Washington.