Improper behaviour by Mexican copper producers

22.1.2013

Question for written answer E-000629-13
to the Commission
Rule 117
Cristiana Muscardini (ECR) , Gianluca Susta (S&D) , Niccolò Rinaldi (ALDE)

Over the last decade, there has been a steep rise in the raw material price of copper, with some copper pipes being replaced by other materials (plastic/aluminium). Because of a production overcapacity estimated at around 90 000 tonnes (18 % of current EU production), two major producers of copper pipes have been forced to close since 2008: the Belgian company Boliden Cuivre & Zinc, which previously produced 30 000 tonnes a year, and the Finnish steel giant Outokumpu, which closed its Spanish factory producing 40 000 tonnes a year and left the sector completely. Currently, the majority of the EU’s production of copper pipes takes place in three countries: Italy, Germany and Greece.

The exponential growth in exports to Europe of products manufactured in countries that benefit from preferential rules or free trade agreements in terms of duties is causing huge damage to European producers.

For example, Golden Dragon Precise Tube (GD), the world’s largest producer of copper pipes, with an annual output of 250 000 tonnes, announced in 2008 that it would be setting up a new factory in Mexico by 2009, with a production capacity of 60 000 tonnes of EN 12735/2 product, intended for the North American and European markets. In response, in 2009 the USA applied a duty of 61 % for copper pipes from China and 54 % for those from Mexico. After this duty was introduced, GD MEXICO concentrated on the European market, with which there is zero duty because of a free trade agreement: by way of example, in just one year (2012) imports of EN 12735/2 copper from Mexico to Italy rose from 0 to 2 000 tonnes, and forecasts suggest that the figure will reach 4 000 tonnes by the end of 2013.

Does the Commission believe it is necessary to look more closely into this problem, which is causing serious damage to the European economy, with a possible investigation to determine whether Mexico is behaving improperly?

OJ C 347 E, 28/11/2013