In preparation for its independent trade remedy framework, the UK government has launched a Call for Evidence on November 28, 2017 to identify UK businesses that produce goods currently subject to EU anti-dumping or anti-subsidy measures. Currently, all trade remedy activities applying in the UK (for example investigations, decisions, and monitoring) are undertaken by the European Commission under the EU’s common commercial policy.  Post-Brexit, the UK plans to operate its own trade remedy regime through the “UK Trade Remedies Authority”. (See here for our previous post on the trade and customs bills establishing these powers.) Continue Reading UK Government Seeks Views from Businesses on Maintaining Existing Trade Remedy Measures Post-Brexit

On October 3, 2017, the EU Parliament, the Council, and the Commission reached an agreement on changes to the EU anti-dumping and anti-subsidy legislation. (See our previous posts on China’s status and the public consultation.) Concurrently, however, the 2013 Commission’s proposal on the Modernization of Trade Defense Instruments (covering inter alia amendments to the “lesser duty rule”) is still undergoing internal negotiations.

Continue Reading EU Reaches Political Agreement On New Anti-Dumping Methodology

Background

Fifteen years ago, China joined the World Trade Organization (“WTO”). To alleviate concerns of cheap Chinese goods flooding international markets at that time, China agreed to allow other WTO members to continue conducting their anti-dumping calculations in a special way, thereby recognizing the concerns of certain members that prices of Chinese goods could be distorted due to state interference. This methodology considered China as a “non-market economy” (“NME”). In a nutshell, this means other countries can disregard Chinese prices or costs, and can use “alternative methods” (external benchmarks, such as hypothetical costs of a third country) to determine the margin of dumping in an investigation. In doing so, authorities will typically end up levying higher anti-dumping duties on Chinese goods.

Continue Reading Anti-Dumping, Non-Market Economy and Chinese Goods – Where Do We Stand in the EU?

On February 10, 2016, the European Commission (“the Commission”) launched a public online consultation to gather input from stakeholders on possible changes to the methodology for assessing dumping duties on goods originating from China. [1] This consultation takes place in the context of the impending expiry on December 11, 2016, of certain provisions of China’s Accession Protocol to the WTO, which essentially allowed the EU and other WTO members to treat China as a non-market economy (“NME”) in anti-dumping investigations. The consultation follows a College orientation debate on the treatment of China in anti-dumping investigations, on January 13, 2016.[2]

Continue Reading European Commission Launches Public Online Consultation on Possible Methodology Changes in Trade Defense Investigations Regarding China