Duties of up to 69.7 percent will hit some 275 million euros' ($390 billion) worth of Chinese bathroom, kitchen and paving tiles, which the EU says are being exported annually to Europe at illegally low prices, hurting local producers.
The antidumping duties -- in place provisionally since February at similar levels while EU officials investigated the case -- are widely expected to gain approval from EU government representatives and take effect in mid-September.
They will be in place for five years.
If approved, duties are likely to add to tensions between the EU and China over the latter's curbs on coveted minerals exports, its recent victory against the EU at the World Trade Organisation and growing fears that China plans to enter global competition in high-tech goods production.
Price War
The European Union is the world's biggest ceramic tile producer after China and exports 25 percent of its production, with market share rising abroad, according to industry figures.
The bloc uses about one billion square metres of floor and wall tiles every year, sourcing about 7 percent of these from China.
Fears of increased Chinese competition have prompted a price war, according to the European Ceramic Tile Manufacturers' Federation, which asked the Commission to investigate Chinese export practices last year.
The federation says profit margins of its 500 member firms shrank to 0.28 percent in 2009 from almost 7 percent in 2005.
The Foreign Trade Association, which represents EU retailers and importers including Walmart-owned Asda and Metro, disputes such figures and said five-year duties would hurt its members.
"Some of our largest DIY members will be affected, but this will be worst for our small and specialised retailers," said Stuart Newman, legal adviser at the FTA.
Under the proposed duty regime, a number of Chinese producers will face duties of between 26.3 and 36.5 percent, according to the document. All other Chinese producers will face the maximum 69.7 percent duty, the document said. (Reuters)
