First it was cheap T-shirts and bras. Next it was shoes. Then energy-saving light bulbs. Now British retailers are up in arms over another booming Chinese export to Europe - low-cost candles.

The British Retail Consortium (BRC) yesterday warned that an EU anti-dumping investigation into cheap Chinese candles could make them 50% more expensive if it leads to new duties on them.

Peter Mandelson, EC trade commissioner, reluctantly ordered the investigation at the weekend after four European candle manufacturers, including Bolsius in the Netherlands, complained of China's "predatory strategies" and the loss of hundreds of European jobs.

The dispute threatens to embroil him in a repeat of the "bra wars" of 2005 and last year's light bulbs imbroglio, with manufacturers and retailers at loggerheads and the 27 EU governments divided down the middle.

Mandelson, who heads for Beijing this week for fresh talks on China's burgeoning trade surplus with Europe, says that the investigation will last 15 months. Late last year he re-imposed duties on energy-saving light-bulbs for a year after a dispute between big manufacturers such as Osram and Philips.

The BRC, backed by powerful continental retailers such as Ikea, says taxes on candles would be another slap in the face for consumers as other candle-making countries cannot produce the quantities customers require. It claims the duties "could well add over 50% to the dockside price of candles".

Stephen Robertson, BRC director general, said: "The European Union talks about the benefits of free trade but, yet again, does exactly the opposite. Like a parent constantly indulging a spoilt child, the EU repeatedly featherbeds uncompetitive producers at the expense of consumers and retailers."

The European Candle Institute, formed to present the four manufacturers' official anti-dumping complaint and claiming to represent 40% of European production, blames the Chinese for dumping candles at prices below those for candle fuel - and accuses the retailers of capitalising on the lower prices for imported candles to increase their profit margins.

The institute says China has doubled its share of the EU market to 40% in the past five years while the BRC says its imports account for £210m of the £626m market.

David Gow in Brussels

The Guardian, Tuesday February 19 2008

Source: www.guardian.co.uk