European trade chief Peter Mandelson has urged EU countries to narrow their differences over how to address growing competition from Asia or risk paralysis over trade reforms.
The 25-nation European Union is divided on whether to impose anti-dumping duties on shoes from China and Vietnam. It is the latest case to expose the rift between pro-free trade countries, led by the Nordics, and those, often in Southern Europe, with industries at risk from Asian exports.
Mr Mandelson said a planned review of EU anti-dumping rules would have to reflect "the new realities of globalisation" such as the growing interests of European firms that have invested heavily in manufacturing in low-cost countries such as China.
Traditionally, the EU's anti-dumping rules have sought to shield producers inside the bloc and some Southern European countries are worried about the planned reform.
"My experience in recent months suggests that Europe could become immobilised between competing interests if we do not find a way to re-establish consensus in the use of these necessary instruments," Mr Mandelson said today.
As well as reviewing the EU's anti-dumping rules, Mr Mandelson has said he wants to open talks about possible free trade agreements with India, South Korea and southeast Asian countries to create new opportunities for EU businesses.
Brussels also plans to negotiate with China on issues such as intellectual property and barriers to foreign investment.