EU to cut punitive China fibreglass tariff-sources
* Chinese fibreglass prices less damaging than first thought
* Tariff cut will help European wind power, vehicle sectors
BRUSSELS, Jan 7 (Reuters) - The European Commission plans a significant cut in the punitive tariffs it imposed last year on Chinese-made fibreglass used in the clean technology sector, EU diplomats and people close to the issue told Reuters on Friday.
The Commission, the European Union's executive, plans to reduce the anti-dumping tariffs to less than 14 percent by mid-March from a 43.6 percent temporary rate set in September 2010.
"The new plan for duties is quite a bit lower than originally, which reflects the opposition to the original duties," a person familiar with the case told Reuters.
The duties aim to counteract what the EU says is illegal market dumping by Chinese producers. If approved by a majority of EU states, the new rate will apply for up to five years.
The radical cut in the tariffs reflects concern that the higher rate will limit the supply of the lightweight material used in wind turbines, cars and ship hulls at a time when the EU is trying to curb its energy consumption, diplomats say.
"We welcome any measure that reduces trade barriers for clean energy technologies. This will ultimately help the wind industry grow faster, accelerate the uptake of wind energy globally and reduce costs for consumers,' said Steve Sawyer, secretary general of the international industry group, the Global Wind Energy Council. Continued...