BRUSSELS (AFP) — The European Commission could open an anti-dumping probe into imports of Chinese-made candles in the coming weeks following a complaint from EU manufacturers, a diplomat said Wednesday.

"A Commission decision on this case is expected around the middle of February," the European diplomat said.

European candlemakers representing a 40 percent share of the EU market recently filed an anti-dumping complaint with the European Commission targeting booming Chinese imports.

The European Candle Institute, a lobby formed by four firms specifically to make the complaint, said imports of Chinese-made candles had nearly doubled from 2002 to 2006 while prices had tumbled, eating into European manufacturers' profit margins.

"The massive underselling from China cannot be explained with economic advantages, particularly on account of lower wages," the association said in a statement.

"Still it can be observed that the European retail trade imports candles from China at prices which are lower than the world market prices," it added. "This competition is only possible on account of unfair and therefore non-legal methods."

After receiving an anti-dumping complaint, the European Commission has a year to determine whether the targeted producers are selling products in Europe unfairly at below-cost prices.

Following the investigation, the European Union can then decide whether to impose anti-dumping duties in retaliation.

The candles case risks reigniting divisions between EU members over when and how to use anti-dumping actions after a row over energy-efficient light bulbs split European governments last year.

In an even more delicate case, the European Commission is already investigating anti-dumping allegations from EU steelmakers aimed at Chinese imports.

Feb 6, 2008

Source: afp