Fiber optic cables are crucial in the transformation of European broadband networks. It is therefore particularly important for the European Commission to ensure fair competition and security for this part of the European telecommunications sector.
It comes as no surprise, then, that the EC is scrutinising another country for introducing fiber optic cables to the market at prices that adversely affect the EU industry. An anti-dumping investigation has been initiated against shipments of singlemode fiber optic cables originating in India (excluding connectorized cables and cables for underwater applications).
At this time, the levels at which duties may be imposed have not been specified, but when forecasting these values, it should be borne in mind that the duty for Chinese suppliers has finally been increased to high levels ranging from 39.4% to 88%. At the same time, provisional measures for Indian cables may be introduced as early as 7 months after the publication of the document, i.e., in Q3 2024.
What are the possible consequences for EU customers?
First and foremost, the introduction of an anti-dumping duty may cause disruptions in the supply chain of fiber optic cables, which may affect the timing and stability of supply in the EU. It is also important to consider whether suppliers selling products from India will ensure price stability. This is particularly relevant in larger projects where contracts may involve multi-month supply of goods. If a duty of several tens of percent is imposed, a situation may arise where the supplier will be forced to change pricing terms or even break the contract.
In view of the above, we would like to assure our partners and customers that the described activities of the EC will not affect the price offer of FIBRAIN fiber optic cables, as our production plants are located in Poland. At the same time, with the expected course of events, we encourage you to choose a European manufacturer with an established position on the market that ensures price stability in this situation, which may be of considerable significance in the process of budget planning for long-term projects and investments. We will be monitoring the EC’s activities and will keep you informed of the next steps taken in this matter.
More information you can find here> https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=OJ:C_202300891
