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BIPAVER
EC Unable to Defend European SME Industry Against Chinese Imports says BIPAVER
Why is the European Commission not able to defend your interests?
Apparently legislation does not provide the comparison between new and retreaded (read Reconditioned) products. The fact that sell out – and even FOB (Free on Board) prices of imported truck tyres, Chinese in particular, have fallen below the manufacturing costs of a retreaded tyre, does not interest our Trade Commissioner to act on our behalf. A Commissioner that states that her first responsibilities are “Pursuing an ambitious trade agenda to the benefit of European citizens, SMEs and the broader economy”, it is hard to believe that Mrs. Malmstrøm understand the function of SME in today’s economy.
What has been the effect of cheap truck tyre imports on the European retread industry?
The market share that represents under normal market conditions a figure of approximately 50% has fallen today under the 25%! We noticed over the last five years an important reduction of retreading facilities and important job losses. Most individual retreaders, being typical SME companies, are producing far under their capacity and writing red figures. A situation that cannot continue without establishing a level playing field in the truck tyre market.
What are the expectations of Bipaver regarding import duties?
Sometimes contrary to the development of the raw material market we have noticed that the prices of Chinese truck tyres have been decreasing over the last five years. If these measures will be sufficient, only the market can tell. The proof of the pudding is in the eating!
The quality range of Chinese truck tyres are known to be wide spread.
How does Bipaver proposes to deal with particular issue?
Bipaver asked the Commission to focus on the real cheap imported truck tyres. The cheapest in the market today are known as the three belt truck tyres, often in combination with a zero degree angle. A 30-year old technology. Therefore not very innovative and those particular tyres, most of the time un-retreadable are a threat to the retreading business and are in fact only increasing waste. A matter
of experience and proven technology. Therefore we asked the commission to focus on those imported tyres.
If AD measures are implemented, they will also be beneficiary to the European tyre industry. Is Bipaver working with the European tyre industry?
The European retread industry have always been working closely with the tyre manufacturers, due to the use of technology and the mutual interests in standardisation and legislation. Bipaver was in close contact with our colleagues from the retreading new tyre industry. Since not every industry has its own retreading activities, Bipaver members are in some cases acting on behalf of all their customers, including their new tyres customers.
Does Bipaver expect identical complaints from the new tyre industry?
It is a question that can only be answered by the new tyre industry’s representative, ETRMA. One can never exclude such an initiative, however, Bipaver has not been informed that ETRMA is inclined to develop such an effort. We can imagine that if the imports of cheap products continue to threaten the market and consequently the continuity of the European industry, ETRMA can consider such important steps.
Other continents and most recently India have or will implement AD measures against cheap imports? Why so late?
Anti-dumping procedures take a lot of time, due to the legislation and the necessary investigation. Just complaining is not enough and does not meet the high standards of the European Commission. They work in a very prudent structure with strict procedures before taking such important decisions. Bipaver is working on this issue since March 2015. Procedures take normally two years before implementation. We are grateful for the support of our members that we have experienced over this long period of time. Sharing their company results in every detail. Other continents, often with different political circumstances, may have less procedures. It is also due to their AD measures that Europe has been affected seriously.
In a move designed to shame EU lawmakers into action on the issue of Chinese tyres, BIPAVER has issued a press statement accusing the European Commission of being unable to defend European SME Industry against cheap imports from China. At the same time BIPAVER has also written individual letters to Jean-Claude Juncker, President of the European Commission and Dr FCGM Timmermanns, Vice- Chairman of the European Commission, urging them to reconsider the recent decision by GD Handel not to initiate an anti- dumping action against the Chinese. The failure to introduce such an action, says the letter, threatens 10,000 SME jobs across Europe and stands to eliminate, at least in the medium term, a whole branch of the tyre industry in Europe.
“After more than a year asking the Directorate-General Trade to consider our case and presenting several solutions, both technical and legislative, it has become clear that the European Commission is not able to defend our industry
due to the lack of legislation for this specific situation within the retread industry,” says the strongly worded press release. “At a time when the EU is discussing opening even further the EU market to imports from diverse exporting countries and when its citizens are questioning the European project, the retreading industry cannot understand the added value of a European trade policy if they are not able to defend their own SME industries. “Bipaver strongly advises Commissioner Cecilia Malmstrøm to reassess what the EU can or cannot do in the coming weeks in order to establish a level playing field and safeguard our industry and its SMEs in particular.”
In justifying its position, BIPAVER points out in its press release that “the Chinese tyre industry has been dumping truck tyres in the European market. Today the prices of most of their products sold in the EU-28 have fallen below the manufacturing costs of retreaded truck tyres. Market conditions have worsened quickly over the last year mainly due to an
increase of anti-dumping regulations in neighbouring continents.” This, it says, has resulted in an increase in cheap imports from 1 million to 5 million tyres over the course of the past five years, during which time truck retreads have fallen from 6 million to 4 million units. Retreading companies, points out the release have, in general, a limited economic trading range of a few hundred kilometres and are therefore limited to trade within the EU-28.
EU Commissioner Cecilia Malmstrøm
Anti-Dumping – BIPAVER Explains its Position
Why has Bipaver asked for Anti- Dumping measures?
Prices of imported truck tyres, Chinese in particular, have been decreasing over the last five years. Today prices have fallen far beyond
the manufacturing costs, even of retreaded tyres. The sum of raw materials necessary to manufacture a quality truck tyre are above the offers of today. Simply without any measures the tyre retread industry will stop to exist.
10 Retreading Business