NEWS

See what measures the EU can take against dumped or subsidized imports, how often it acts and how the anti-dumping policy is being improved.

Anti-dumping legislation is a trade defense instrument that the EU can use against unfair commercial practices to protect jobs and businesses in Europe.

Why does the EU apply anti-dumping measures?

The EU favors free trade, which creates jobs and wealth. However, trade may be altered when countries unfairly subsidize products or produce above demand and sell at reduced prices in other markets.

That makes it difficult for other companies to compete and could lead to the closure of national companies and layoffs. To protect companies and workers, the EU has the possibility of resorting to anti-dumping or anti-subsidy measures.

How can the EU fight against dumped and subsidized products?

The EU can impose fines on non-EU countries if it is discovered that they are introducing products in Europe unfairly. The fine takes the form of anti-dumping duties or tariffs on the dumped products.

However, the EU must comply with the rules of the World Trade Organization (WTO).

What is the role of the WTO?

The World Trade Organization (WTO) is a 164-member international organization that regulates world trade. It establishes the framework for negotiating trade agreements and has rules for resolving disputes. EU countries are generally represented by the European Commission.

When it comes to unfair commercial practices, WTO members have agreed to follow the organization's procedures, which facilitates dispute resolution. The rules include a procedure on how to respond if other countries introduce products at artificially low prices in their market.

How does the procedure to impose anti-dumping duties work?

Before the EU can initiate an investigation, EU producers must file a complaint. In accordance with WTO rules, the EU must demonstrate that its industry has been harmed because the products are subsidized or dumped.

How are the anti-dumping duties calculated?

Calculating anti-dumping duties is a complicated matter. The factors taken into consideration include the difference between the export price and the price in the country of origin.

How often does the EU use anti-dumping measures?

The EU uses commercial defense instruments less than other international actors: only 0.21% of the Union's imports are affected. But protection against dumped and subsidized products has proven vital for a range of EU industries.

Which is the biggest offending country?

The main objective of the EU anti-dumping duties is China. In October 2016, there were tariffs against more than 50 different Chinese products, mainly aluminum, bicycles, cement, chemicals, ceramics, glass, paper, solar panels and steel.

How is the EU improving the rules?

In November 2017, MEPs adopted stricter rules to fight unfairly cheap imports:

• The impact of social and environmental dumping will be taken into account when deciding on anti-dumping measures.
• The European Commission must monitor the circumstances in the exporting countries. EU companies can use these reports when submitting complaints.

MEPs also supported in May 2018 additional rules that allow the EU to impose higher tariffs on dumped or subsidized imports:

• The EU may set higher tariffs for dumped and subsidized products.
• Anti-dumping investigations will be significantly shorter.
• A support service for SMEs will deal with complaints and investigation procedures; the unions will participate in the investigations and evaluate the measures that are imposed.
• All products arriving in the EU will pass strict control from the moment an investigation is notified until it begins and is registered.
• The rules will be extended to areas of economic exclusion (mainly used for energy production).

Both proposals will come into force once the Council has approved them and they have been published in the official EU newspaper.