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EC Relents on Plastic Bag Tariff

Posted on: Wednesday, 8 March 2006, 06:00 CST

By MARK SMITH

BRITISH Polythene Industries, Europe's largest manufacturer of plastic film and bags, yesterday welcomed the news that the European Commission will hold back on plans to introduce an anti-dumping tariff on plastic bags imported from China, Malaysia and Thailand.

Port Glasgow-based BPI has a sizable operation in China and imports about GBP7m worth of bags into the UK each year.

Earlier this week, the company warned that if the EU imposed an additional tariff, it would impact negatively on its Chinese business, which it planned to expand this year.

The European Union's executive, which has been investigating whether the plastic bags are being sold below cost in the 25-nation bloc, has now decided not to introduce provisional duties.

"The commission will not propose the imposition of provisional measures at this stage as the investigation continues, " an EU official said yesterday.

The investigation, which has drawn protests from China, has run in parallel with one into leather shoe imports from China and Vietnam.

French plastic bag makers were among those complaining about Asian bags being "dumped" in Europe.

However, Cameron McLatchie, chairman of BPI, yesterday said: "We welcome this latest move by European Commission . . . This doesn't mean that there will no additional tariff, but it does mean there will be no provisional duty and that they have decided they need to investigate the impact of this tariff further."

Source: Herald, The; Glasgow (UK)

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