China has objected to changes to European Union (EU) anti-dumping and anti-subsidy legislation, claiming they violate World Trade Organization (WTO) rules.
The EU implemented the changes in November, with a new methodology for calculating anti-dumping margins aimed at making the system more effective and transparent for the bloc’s producers, users and importers. It concluded a process launched by the European Commission in 2013 and represents “a balanced outcome, taking into account the interests of EU producers, users and importers.”
EU modernises trade defence regulations
The new rules will shorten the current nine-month investigation period for the imposition of provisional measures and make the system more transparent. Companies will benefit from an early warning system that will help them adapt in case duties are imposed. Smaller companies will also get assistance from a specific help desk, to make it easier for them to trigger and participate in trade defence proceedings.
In some cases the EU will also adapt its ‘lesser duty rule’ and may impose higher duties. This will apply to cases targeting imports of unfairly subsidised or dumped products from countries where raw materials and energy prices are distorted.
China’s Ministry of Commerce, however, claims the EU’s new methodology is “against the WTO rules.” Specifically, it says the amendments have abolished the non-market economies’ (NMEs) list in favour of a method based on “significant market distortions.”
“When confirming the situation of ‘significant market distortions’, the EU can abandon the exporters’ prices or costs and determine the existence of dumping based on the prices of a third country or international prices,” it says.
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By GlobalData“The EU’s new anti-dumping investigation methodology cannot be backed up by the WTO rules. The EU continues to use the ‘surrogate country’ approach, regardless of the WTO rules, and decides the existence of ‘significant market distortions’ of other countries by its own standards. This will weaken the authority of the WTO’s anti-dumping legal system.”
The Ministry stresses the EU should “respect the international rules” – and warns that China will protect its own interests through “necessary methods.”
