Archive for October, 2014

China Steel-Pipe Makers May Face 5-Year EU-Tariff Renewal

The European Union may renew tariffs on steel pipes from China for another five years, highlighting worries in Europe about the Chinese threat to the EUs manufacturing base.

The EU said it would examine whether to re-impose the duties as high as 39.2 percent on imports from China of seamless pipes and tubes, which are used in the construction, energy and engineering industries.

In 2009, seeking to protect European producers including ArcelorMittal (MT) and Vallourec SA (VK), the EU imposed the levies to punish Chinese exporters such as Hengyang Valin Steel Tube Co. for allegedly having sold the pipes and tubes in Europe below cost, a practice known as dumping.

The review will determine whether the expiry of the measures would be likely to lead to a continuation or recurrence of dumping, the European Commission, the 28-nation blocs trade authority in Brussels, said today in the Official Journal. The anti-dumping duties were due to lapse Oct. 7 and will now stay in place during the probe, which can last as long as 15 months.

The case has highlighted the EUs readiness to protect European manufacturers from Chinese competitors because, when it applied the five-year duties in 2009, the bloc cited the threat of injury to European producers as a result of cheaper imports. European anti-dumping duties usually aim to counter actual harm to EU industries rather than the possibility of it.

Chinese exporters of seamless pipes and tubes increased their combined share of the EU market to 17.1 percent in the 12 months through June 2008 from 1 percent in 2005, the bloc said in 2009. Chinese exporters generated sales in the bloc of about 388 million euros ($490 million) in the 12 months to June 30, 2008, the EU said.

The inquiry into whether to renew the levies stems from a June 27 request by a European industry group on behalf of manufacturers that account for more than a quarter of the EUs output of seamless pipes and tubes, the commission said today. It didnt identify any companies.

To contact the reporter on this story: Jonathan Stearns in Brussels at jstearns2@bloomberg.net

To contact the editors responsible for this story: Alan Crawford at acrawford6@bloomberg.net Andrew Clapham, Jones Hayden

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China Steel-Pipe Makers May Face 5-Year EU-Tariff Renewal

Why Did Philip Morris Spend More Than Anyone Else Lobbying The E.U.?

It turns out that tobacco major Philip Morris Internationalspent 5.25 million to lobby Members of European Parliament, the highest for any company in the European Union in 2013 . This is not a small feat considering that the competition included Exxon Mobil, which came in a close second at 5 million.So why did a big tobacco company outdo a big oil company in seeking to influence regulation? In this article we take a look at some events that may have induced such an expenditure.

See Our Full Analysis For Philip Morris

EUs Tobacco Products Directive

Last year was an important year for tobacco regulation in the European Union. MEPs deliberated on the EUs Tobacco Product Directive, which was eventually approved by the European Parliament in February 2014. Under this legislation, cigarette packs were required to be covered on 65% of their surface area by graphic health warnings. (For our analysis of Philip Morris tussles with regulation regarding health warnings on cigarette packs see our articles An Uruguayan Lawsuit For Philip Morris and Philip Morris Sues Thai Government) E-Cigarettes were to be classified as medicinal products that would put them under much stricter regulatory supervision (Our earlier coverage of Philip Morris e-cigarette market forays can be found at Philip Morris finds its footing in the e-cigarette industry).Flavors such as menthol will also be forbidden for use in cigarettes. Such flavors are argued to make cigarettes more attractive to young people. Atleast one MEP has been quoted as saying that focus of the regulation is on preventing people under the age of 18 taking up smoking. While the ban on menthol will be effective only in 2020, other aspects of this directive become operative within two years of the E.U. parliament approval.

Lobbying Against The New Directive

The European Ombudsman has launched an investigation against the European Commission for holding backdoor discussions with the tobacco industry (The European Ombudsman is the agency that investigates complaints about maladministration within the E.U. institutions). This is a violation of United Nations rules in this regard, which mandate that all meetings between regulators and tobacco companies or their lobbyists must be made public. Former European Commissioner John Dalli had been forced to resign over such violations.

Meanwhile, internal documents leaked from Philip Morris offices give indications of targeted efforts to delay the regulatory decision making in this regard. The company apparently used 161 lobbyists to this end, who cost it 1.25 million in meeting expenses alone. 31% of MEPs had been met by Philip Morris atleast once within a six month period. These documents are said to contain evidence that the company commissioned economic and academic studies to influence opinion. They are also believed to have used farmers organizations and retail industry bodies to lobby the E.U. In 2013, a crucial vote in this regard had been delayed for a while, raising apprehensions about the future of the regulation.

Philip Morris has stood by its right to actively advocate its views during the regulatory decision making process. It sought credit for entering such information in the Transparency Register, a mechanism whereby the E.U. expects lobbying activities to be made public.It also suggested that the regulation was flawed. Philip Morris wanted the regulation to be modified to make it fair and scientific. Its spokesperson suggested that the current regulation unnecessarily burdens the economy.

Philip Morris efforts at lobbying against the new regulation needs to be seen in the light of its need to stem the decrease in the market size for cigarettes in the European Union. The number of cigarettes sold in the European union is expected to decrease from 450 billion currently to 375 billion in 2021.

If the adoption of smoking among the younger segments of the population is thwarted by more effective regulations, it could mean the market size could shrink further. This could hurt Philip Morris future revenue streams from the European Union region negatively. Hence Philip Morris can be expected to lobby the E.U. aggressively going ahead as well to protect its European Union market. Its lead over Exxon Mobil in lobbying expenditures could very well be here to stay.

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Why Did Philip Morris Spend More Than Anyone Else Lobbying The E.U.?

3439 In the Graveyard of Empires America’s War in Afghanistan by Jones, Seth G – Video


3439 In the Graveyard of Empires America #39;s War in Afghanistan by Jones, Seth G
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Far Cry-Rambo 3 Afghanistan Part 9 – Video


Far Cry-Rambo 3 Afghanistan Part 9

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US troops to stay in Afghanistan after year-end – Video


US troops to stay in Afghanistan after year-end
New Afghan President Ashraf Ghani has signed a deal with US officials to allow American troops to stay in the country after the end of the year. The agreement was signed at the presidential...

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