The European Commission is preparing to recommend removing punitive tariffs on imports of frozen strawberries from China, despite strong protests from Poland that Chinese competition is unfairly damaging its own producers.

The significance of the move goes further than a row over imported fruit. It is a sign that Peter Mandelson, the Trade Commissioner, is determined to strike a balance when assessing the impact of cheap imports on the European economy.

After the furore over anti-dumping duties on Chinese shoes and textiles to protect EU manufacturers, the latest case demonstrates that the interests of other groups ranging from consumers to yoghurt and jam producers are also taken into account.

After heavy pressure from both the Polish Government and industry, the EU opened an investigation January last year into allegations that China was dumping frozen strawberries on to the European market. The preliminary findings supported the claims and provisional tariffs were introduced in mid-October.

However, Mr Mandelson’s department is now recommending that the decision be overturned. An internal document explains the change of heart.

It maintains that the original inquiry did not uncover sufficient evidence of dumping and failed to prove that the imports caused any injury to EU farmers.

It also refers to findings last year by the Commission’s agriculture department which concluded that the problems Polish strawberry growers were facing were mainly structural. Bad weather, high labour costs and inefficiency rather than Asian imports were responsible for Polish difficulties, it argued.

Finally, the latest assessment took account of not just strawberry farmers, but also industries that use the Chinese imports as ingredients for other products and the damage which would be caused to them if the EU kept in place, or increased, the tariffs.

Mr Mandelson’s proposal is expected to be accepted by his Commission colleagues within the next few days and will then be presented to EU governments.

There is little doubt that the Polish Government, whose country is the world’s largest supplier of frozen strawberries, will lobby hard against any relaxation, but it looks certain to be outvoted. A final decision is likely before Easter.

Although sales of frozen Polish strawberries fell during 2004 and 2005, while Chinese imports rose, its exports had recovered by the third quarter of last year.

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