New EU anti-dumping methodology

On the 3rd of October 2017, the negotiators of the European Parliament and the Council reached an agreement on the proposal adopted by the Commission in November 2016 to change the EU’s anti-dumping and anti-subsidy legislation.

These changes will enable Europe’s trade defence instruments to deal with current realities – notably overcapacities – in the international trading environment, while fully respecting the EU’s international obligations in the legal framework of the World Trade Organisation (WTO).

The new legislation introduces a new methodology for calculating dumping margins for imports from third countries in case of significant market distortions, or a pervasive State’s influence on the economy. The rules are formulated in a country-neutral way and in full compliance with the EU’s WTO obligations.

The agreement also includes changes which strengthen the EU anti-subsidy legislation so that, in future cases, any new subsidies revealed in the course of an investigation can be investigated and included in the final duties imposed.

The new rules will only apply to cases initiated after the legislation enters into force. The legislation also ensures a transition period during which all anti-dumping measures currently in place as well as ongoing investigations will remain subject to the existing legislation.

In determining distortions, several criteria will be considered, such as state policies and influence, the widespread presence of state-owned enterprises, discrimination in favour of domestic companies and the lack of independence of the financial sector. The Commission may draft reports for countries or sectors where it will identify distortions and the evidence collected in these reports will be available for future investigations. When filing complaints, the industry will be able to rely on such reports by the Commission to make their case concerning countries where distortions exist.

The legislation is expected to enter into force before the end of the year.


Sources: European ParliamentEuropean Commission



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