The British Retail Consortium (BRC) has attacked plans by the EU to impose a tax on candles from China, labelling it “another slap in the face” for retailers and consumers.
Today the EU launched an anti-dumping investigation into claims by some European candlemakers that China is selling candles into the EU below the cost of manufacture.
The EU intends to introduce a new tariff before September that will be in place for five years. The BRC, which is against all anti-dumping levies on Chinese products, said that the tax could add more than 50 per cent to the price of candles. The organisation argued that the EU should be encouraging free trade rather than adding restrictions and tariffs that could increase prices in stores.
“Retailers say other candle making countries cannot produce the quantities customers require, so the new duty will force up shop prices directly and reduce supply,” said the BRC.
The EU has previously imposed duties on other Chinese products, including low energy lightbulbs and shoes.
“This candle scandal may not be the major EU trade issue but it follows a string of other new import duties on products. There is no justification for customers going short of supplies and being forced to pay more. Protectionism can never be a long term answer for European manufacturers,” said Stephen Robertson, Director General of the BRC.
Imports from China accounted for£210m of the EU’s£626 million candle market in 2006. More than 90 per cent of all EU candle imports came from China.