Sept 30, 2012 (LBO) – The European Union has protested to Sri Lanka over the re-export of Chinese-made bicycles which have been slapped with protective ‘anti-dumping’ taxes when exported direct, a media report said. Sri Lanka’s The Sunday Times newspaper said a protest was lodged with Sri Lanka’s embassy in Brussels by EU’s Director General of Trade.
The report said EU was probing exports from Sri Lanka, Indonesia, Malaysia and Tunisia.
“The investigators will have to find out whether exports from Sri Lanka are genuine or bypassing the regulations,” the newspaper quoted EU’s Sri Lanka representative Bernard Savage as saying.
The EU has slapped a 48.5 percent ‘anti-dumping’ duty for 19 years on Chinese bicycle exports.
‘Anti-dumping’ duties are the latest protectionist measure devised by national ‘domestic production’ lobbies in countries where ordinary citizens have already seen through the tax-arbitraging racket of overt protectionism.
The probe against Sri Lanka was opened on a request by the European Bicycle Manufacturers Association, The Sunday Times said.
An exporter who sells a good in foreign markets ‘below cost’ either has to sell ‘above cost’ in the domestic mark