Europe splits over anti-dumping shake-up

A planned revamp of the European Union's trade defence arsenal has sparked a fierce battle over how to deal with the growing number of EU companies shifting production to lower-cost countries like China.
EU Trade Commissioner Peter Mandelson wants to shake up the bloc's anti-dumping rules to better reflect the interests of European companies producing abroad as well as consumers and retailers in Europe.
Although he has not even brought out any formal plans, the mere whiff of reform has alarmed countries like France, Germany, Italy, Spain and Portugal, who fear it would weaken anti-dumping defences supposed to protect companies producing in Europe.
"You can't just ignore traditional industry in regions that suffer from the consequences of globalisation and offshore production," one member of the Commission said on condition of anonymity.
"The British don't have any industry any more in their country so they don't care, they think everything is services," the official said.
Despite the opposition, Mandelson can count on support from other traditionally more free-trade friendly countries such as Britain and the Scandinavian countries.
Amid such divisions, Mandelson has been forced to return to the drawing board to reconsider his proposals, repeatedly delaying their publication, now due in January.
Mandelson warned last week that to "respond to barriers with barriers of our own", Europe ultimately shoots itself in the foot since so many European companies have manufacturing operations abroad.
"It doesn't make economic sense, not least because Europe has the world's longest and most sophisticated supply chains, and a barrier that protects one part of European industry can easily hurt another," he added.