In a sign of a backlash against cheap Chinese imports in the European Union, several countries are pushing for punitive tariffs on Chinese goods.

Highlighting growing sensitivity as economic growth slows, European commissioners from Italy, Germany and France are trying to overrule a decision by Peter Mandelson, the British trade commissioner, not to recommend anti-dumping duties on air compressors from China. They have pressed for a discussion by all 27 commissioners tomorrow.

However, Mr Mandelson says such measures would be counter-productive.

A Commission investigation found that the goods, which are used to inflate tyres and in spray paints, were being dumped below cost price. However, it said imposing tariffs would hurt consumers more than it helped manufacturers.

The duties would cost €30m ($44m, £23m) annually, compared with an estimated benefit of about €7m to the Italian producers who had complained, the study found.

China already has 50 per cent of the market, partly thanks to European companies investing there, while the Italian producers represent just 8 per cent.

However, Günter Verheugen, the German industry commissioner, fears setting a precedent that would strip Europe's heavy industry of tactics to fend off low-cost competition.

Any case of dumping should be punished, he believes. Franco Frattini of Italy and Jacques Barrot of France are backing his line.

Those countries voted against Mr Mandelson's recommendation this month but were narrowly defeated. The 27-member bloc was split 13-13 with one abstention. Under EU law, that counts as assent and gave Mr Mandelson the majority he needed.

Nu Air and Fiac, the Italian producers behind the complaint, said they were willing to bring back production from China if duties were imposed. If not, they would shift their entire manufacturing operation there, costing 500 jobs in Europe.

"The European Commission is refusing to give us the chance to create hundreds of jobs in Europe because they claim the process of delocalisation of production is irreversible. But we have done the maths: delocalisation is reversible. All we ask is for the European Commission to give us the chance to prove it," said Roberto Balma, president of Nu Air Italy.

However, trade officials dismiss the pledge, arguing that the Italians' subsidiaries in China would not be affected by the tariffs, handing them a competitive advantage.

Relations between Mr Mandelson and many governments are strained after they forced him to abandon plans to adapt trade rules to the era of global supply chains. He had wanted to take greater account of outsourcing and consumer spending power, but traditional industrial interests in Germany, France and southern Europe rejected the idea. He has backed tariffs on Chinese steel and candles.

"Mr Mandelson's proposal should be judged on its merits. It should not be dismissed just because he is the one making it," said Jean-Francois Bellis of Van Bael and Bellis, a law firm representing Chinese companies.

By Nikki Tait and Andrew Bounds in Brussels

Published: February 26 2008 02:00 | Last updated: February 26 2008 02:00

 Source: www.ft.com