EU trade chief delays disputed dumping reform

By William Schomberg

BRUSSELS (Reuters) - The European Union's trade chief said on Friday he was delaying politically sensitive reforms of the bloc's anti-dumping rules because EU governments were too divided on the issue.

"I am not prepared to bring them forward unless and until greater consensus exists amongst the member states about the sort of reform they are prepared to embrace," EU Trade Commissioner Peter Mandelson told Reuters.

He proposed in late 2006 that the EU's anti-dumping rules should be updated to reflect how many European companies now produce goods offshore or rely on imports from countries such as China and India.

But other European firms with manufacturing inside the bloc protested that the reforms would expose them to unfair competition from exporters in low-cost locations.

Under existing rules, companies can complain to the European Commission if they suspect competitors of dumping goods on the EU market at below cost price

The leaders of several EU countries, including the prime ministers of France and Italy and German officials, expressed concern about the idea late last year.

European Commission President Jose Manuel Barroso has urged his team to avoid controversial moves such as taking legal action against member states on sensitive issues while the 27 EU countries are ratifying a crucial reform treaty ths year.

Mandelson said leaders of other countries had urged Brussels to pursue the reforms but there was not enough common ground.