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EU plans for cotton duty ‘will cost jobs’

June 30th, 1998
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European Commission proposals to impose anti-dumping measures for five years on unbleached cotton from five emerging markets … could cost thousands of jobs within and outside Europe. The EU … called for a mixture of dumping duties, averaging 12 per cent, and minimum price undertakings on imported ‘grey’ cotton – raw material for clothing and bed linen – from China, Egypt, India, Indonesia and Pakistan.

Financial Times, 30 July 1998, p4

The Daily Telegraph, 30 July 1998, p4

 

In the past cotton importers absorbed part of the anti-dumping duty which therefore meant it was not totally passed-on to their finishers. Finishers were able to transfer the increase in their costs to the industry further down the chain. Thus the increase in the cost of the raw material was shared out by the different steps in the chain. The amount of increase to the end-user was consequently far less than the percentage figure used to collect duty at the import stage. Even if the impact of the measures were greater than before, it would not be such as to endanger the viability of Community finishers.

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