EU probes Balkan imports for suspected Chinese tariff evasion

The European Commission is contemplating an investigation into construction material imports originating from several Balkan nations, driven by suspicions that these goods are manufactured using Chinese glass fibre that already faces EU anti-dumping and anti-subsidy duties. The focus of the potential probe is on open mesh fabrics, including those used in thermal insulation systems.

This development occurs as the EU intensifies its scrutiny of low-cost Chinese imports, which contribute significantly to the bloc's substantial trade deficit with China, reportedly amounting to €1 billion per day. In June, the European Commission initiated trade discussions with Beijing, aiming to achieve a more balanced trade relationship by October. EU Trade Commissioner Maroš Šefčovič is scheduled to visit China in the same month.

Simultaneously, the Commission has signaled its readiness to utilize trade defense mechanisms to counteract what it deems unfair Chinese trade practices, including strategies designed to circumvent existing EU tariffs. Chinese producers are accused of selling glass fibre at unfairly low prices, harming European manufacturers. While the EU has previously imposed duties on glass fibre, including imports from Egypt produced by Chinese firms, there is concern that Chinese companies are now using manufacturers in Balkan countries to assemble products, thereby evading these measures.

The European glass fibre industry, represented by Glass Fibre Europe, highlights a significant overcapacity in Chinese glass fibre production, exceeding 100% of the total EU market demand. This situation poses a risk to European producers unless trade defense measures are strengthened. EU leaders have recently mandated the Commission to review and update its trade defense instruments, acknowledging the limitations of current regulations that often address unfair practices on a product-by-product basis.