German ire as Polish furniture 'floods market'
PR dla Zagranicy
Peter Gentle
03.09.2014 16:01
German furniture makers have complained to the EU that Polish firms are beating them in a price war with the help of EU subsidies.
photo - Glow Images/East News
The Association of the German Furniture Industries (VDM) complained to Brussels about Polish manufacturers flooding the market with cheap furniture, arguing that the low-cost production is only viable due to EU funds for the modernization of Polish production.
“We have sent a complaint to Brussels because we have doubts whether these payments are in accordance with EU regulation,” Jan Kurth, of the Head Association of the German Woodworking and Plastic industries of which VDM is the largest member, told the Rzeczpospolita daily.
According to the VDM almost 60 percent of furniture sold in Germany is now imported, a fourfold share increase during the past decade.
Polish exports of furniture to Germany rose by 9 percent in the first half of this year to 1.3 billion euros.
Poland is the main source for German furniture imports, ahead of China.
Polish manufacturers say, however, that the competitive advantage of their furniture is not because of EU funds but mainly due to lower labour costs.” (sl/pg)