Slapping extra tariffs on cheap "dumped" imports can be counter-productive even when justified, the EU's trade chief said yesterday, just weeks before he proposes reform of the EU's trade defence system.

Peter Mandelson, the EU Trade Commissioner, told a conference in the Netherlands that anti-dumping tariffs and quotas could harm Europe's own manufacturers, which have increasingly outsourced the production of shoes, textiles, lightbulbs and other goods, aiming to maintain a competitive edge against cheaper Asian rivals.

"Imposing punitive measures. . . is often both justified and right. But if it is inhibiting companies from pursuing rational production strategies. . . it can also be counter-productive," he said. While Europe should tackle unfair trade, the definitions of what was European-made had become blurred.

Mr Mandelson said the European Commission had struggled before its decision last week to phase out anti-dumping duties on energy-efficient lightbulbs made by EU companies in China. - ( Financial Times service )