EU Considers Anti-subsidy Duties on Chinese Paper

China could be hit with anti-subsidy duties on high-end paper exports in a move that suggests the EU is becoming more aggressive in tackling what it sees as unfair trade practices, the Financial Times reported.

The European Commission has proposed a 12% anti-subsidy duty and an 8% anti-dumping duty on fine paper used in products such as magazines and catalogues. If successful – and a final vote is still required – it would be the first time the EU has resorted to anti-subsidy tariffs in a Chinese trade case. Proving that manufacturers are "dumping" products in Europe at below cost is considered easier than substantiating claims that government subsidies are giving industries an unfair advantage – not least because of the EU's own history of subsidies. The paper case arose from a complaint filed by European manufacturers that Chinese firms had received below-market financing and real estate. Asia Pulp & Paper, China's largest paper exporter, disputes the claims.