Exporters bewail tougher US rules, EU anti-dumping duties

Some Chinese-made products have been subject to more stringent safety rules in the United States and anti-dumping duties in the European Union despite the promise of global leaders at the G20 summit to reject protectionism.

The EU slapped an import tariff of up to 60 per cent on candles and a 50 per cent levy on non-alloy steel wire products from China on Saturday, the same day the 20 major economies agreed not to impose any fresh trade barriers and inconsistent rules under their World Trade Organisation commitments in the next 12 months amid the global financial crisis.

Chinese exporters have also been struggling to survive a controversial US rule promulgated on Wednesday that tightened safety requirements on children's consumer products from the manufacturing floor to retail shelves.

'I hope this is not protectionism,' said Danny Lau Tat-pong, chairman of the 1,000-member Hong Kong Small and Medium Enterprises Association. 'And I hope they will keep their promise.'

He added the EU and US moves would add to the cost burden of mainland manufacturers, with many on the verge of collapse as a result of bleak consumer demand.

In response to a complaint by European manufacturers that Chinese-made candles were selling at prices so low that mainland exporters were getting an unfair advantage, the EU found in its investigation that Chinese candles accounted for 37 per cent of the EU market, worth Euro810 million (HK$8.04 billion) last year.

A 25-strong mainland manufacturers' alliance complained against the new US legislation, which mandates producers to come up with a certificate of compliance on meeting the safety standards on every product in every shipment in terms of substances used in products and product design.