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   Web Issue 3146 May 13 2008   
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Salmon warning as EU to drop minimum price rules
ALAN MACDERMIDMay 10 2008

Silence descended on Scotland's salmon farming industry last night when it emerged the European Union is preparing to drop its anti-dumping measures against Norway.

According to informed sources in Brussels, a long-running trade dispute between the EU and Oslo over cheap imports of Norwegian salmon is about to come to an end.

The EU imposed minimum import prices on Norwegian salmon in 2006 after nearly a decade of wrangling, saying the fish was being sold at unfairly low prices and damaging fish farms in Scotland and Ireland.

Norway denied its exporters were breaking trade rules and took the case to the World Trade Organisation.

After an internal review of the measures, trade officials at the EU's executive European Commission have recommended to EU member states that the minimum prices be eliminated, according to EU sources. "It looks like the case is going to be closed," one said.

The Scottish Government expressed disappointment at the possibility. The reaction from Scotland's salmon farms was muted. Nearly 90% of the industry is run by multi-nationals - most of them Norwegian.

A spokesman for the main industry body, the Scottish Salmon Producers' Organisation, said: "Not everyone takes the same view on this, so we have never made any comment on it."

A Scottish Government spokesman said: "If the findings are as reported then we are disappointed. We will continue to argue that the anti-dumping measures should not be repealed. In the last fortnight, Michael Russell was in Brussels arguing Scotland's case."

Norwegian fish exporters said removing the trade barrier would be an important step and showed they had done no wrong. "We are 100% certain that there was no dumping in 2006," said Trond Davidsen, a director of the Norwegian Seafood Export Council.

"Nor is there any danger of new dumping because there is strong demand for seafood and very good times ahead (for the business). It seems like the commission has taken this into account."

The World Trade Organisation found last year that the EU was at fault on several points in its handling of the salmon-dumping case.


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