EU sharpens anti-dumping methodology 19 December 2017

The EU this morning published Regulation 2017/2321, which amends its methodology in anti-dumping and anti-subsidy investigations, in sectors and countries where there is deemed to be significant distortion to market forces, even if the country in question is a WTO member.

The regulation is the culmination of extended negotiations between the European Commission, Council and Parliament and includes a radical change driven by Parliament to take into account social and environmental factors in deciding how to calculate normal values, the basis for ultimate anti-dumping/subsidy duties.

The new methodology, which comes into force from 20th December 2017, requires the Commission to research, publish and regularly update reports on economies/sectors where it perceives significant distortions to exist. These reports may then be used by EU manufacturers in presenting a complaint requesting a trade defence investigation – effectively making it considerably easier to make the case.

Where it is deemed inappropriate to “use domestic prices and costs in the exporting country due to the existence in that country of significant distortions… the normal value shall be constructed exclusively on the basis of costs of production and sale reflecting undistorted prices or benchmarks.”  Options available to the investigation include “corresponding costs of production and sale in an appropriate representative country with a similar level of economic development as the exporting country”. A key point for the European Parliament was that in doing so the Commission should give preference “to countries with an adequate level of social and environmental protection”. Alternative methodologies include using appropriate, undistorted international prices, costs, or benchmarks or domestic costs, but only where it can be positively established they are not distorted.

The new regulation also includes a clause that provides the European Parliament with levels of oversight on the implementation of the regulation and requires the Commission to report annually to both Parliament and Council. 

A full copy of the new regulation is available from the Official Journal in all EU languages – this link is to the English version. http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=OJ:L:2017:338:FULL&from=EN

Executive Editor

Phil Matten Executive Editor t: +44 (0) 1727 814 400

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Having held senior management roles in leading automotive and fastener businesses, Phil joined Fastener + Fixing Magazine as editor in 2002. Convinced there is no substitute for ‘being there’, over 15 years of visits and interviews around the world means he has accumulated an extraordinary knowledge and perspective of the global fastener industry, reflected in his incisive and thought provoking reporting.