May 30, 2013 (LBO) – Bicycles made in Sri Lanka, Indonesia, Malaysia and Tunisia with Chinese components have been hit with ‘anti-dumping’ duties by the European Union, a media report said. Bloomberg newswires said EU had determined that bikes with Chinese parts were assembled in several countries including Sri Lanka to avoid a 48.5 percent tax imposed on companies allegedly engaged in ‘dumping’.
According to economic nationalist arguments dumping is said to involve selling in foreign countries below cost, usually lower than at home. Anti-dumping duties are supposedly to ‘protect’ domestic manufacturers.
EU is also expected to hit China with ‘anti-dumping’ duty on solar panels, which visiting Chinese premier Li Keqiang last week warned the not to do.
Bloomberg newswires said the decision exempted some Sri Lankan and Tunisian bike makers.
Cheaper foreign imports improve the living standards of ordinary citizens of a country by giving them access to cheaper goods.
In turn their disposable income goes up, which they can spend on other goods and services, including those made at home, which can increase overall domestic demand for goods and services, outside the categ