Documents considered by the Committee on 4 March 2015 - European Scrutiny Contents


13 EU anti-dumping, anti-subsidy and safeguard activities

Committee's assessment Politically important
Committee's decisionCleared from scrutiny
Document detailsCommission report on EU anti-dumping, anti-subsidy and safeguard activities in 2013
Legal base
DepartmentBusiness, Innovation and Skills
Document numbers(36660), 5934/15 + ADD 1, COM(15) 43

Summary and Committee's conclusions

13.1 When dumping takes place, the country affected is allowed to take anti-dumping measures, and, within the EU, Council Regulation (EC) No. 1225/2009 enables the Commission to take provisional measures, whilst substantive steps are reserved to the Council. The current document comprises a Commission report on the EU's anti-dumping, anti-subsidy and safeguard activities in 2013, and notes that, during the year, the level of activity was in line with the average for recent years, with review investigations again accounting for a major part of its services concerned with Trade Defence Instruments.

13.2 Although this is a purely factual report, we regard the Commission's anti-dumping activities as being of some importance. Consequently, although we are content to clear the document, we are drawing it to the attention of the House.

Full details of the document: Commission Report on European Union's anti-dumping, anti-subsidy and safeguard activities 2013: (36660), 5934/15 + ADD 1, COM(15) 43.

Background

13.3 When dumping takes place, international law allows the country affected to take anti-dumping measures, and the 1994 General Agreement on Tariffs and Trade (GATT) sets out detailed rules relating to the calculation of dumping; the procedures for initiating and pursuing an investigation; the imposition of provisional measures; the imposition and collection of anti-dumping duties; and the duration and review of such measures. Similar procedures apply in the case of subsidised imports.

13.4 These provisions have been enshrined in EU law, with Council Regulation (EC) No. 1225/2009 allowing the Commission to take provisional measures, whilst substantive steps are reserved to the Council. Commission Regulations are not depositable: and, whilst Commission proposals for Council Regulations are in principle depositable, they usually contain a great deal of commercially confidential information. They are therefore not published until they have been agreed by the Council, at which point they are invariably cleared as not being of sufficient legal or political importance to warrant a substantive Report to the House.

The current document

13.5 The current document comprises a Commission report on the EU's anti-dumping, anti-subsidy and safeguard activities in 2013. It notes that the EU had in force 86 anti-dumping and 12 anti-subsidy measures at the end of that year, affecting 0.29% of total imports, adding that, during the year, the level of activity was in line with the average for recent years, with nine new investigations being launched. In that same period, provisional duties were imposed in six proceedings, 15 cases were concluded with the imposition of definitive duties, 11 were concluded without measures, and six measures expired automatically after five years.

13.6 The Commission says that review investigations again accounted for a major part of its services concerned with Trade Defence Instruments, and involved a number of headings, as follows:

— Expiry reviews

The Commission notes that measures expire after five years, unless an expiry review demonstrates that they should be maintained, and that 17 expiry review investigations were initiated in 2013, another five were concluded by confirming that the duty should be maintained for a further five years, and eight were concluded by the termination of measures.

— Interim reviews

The Regulation provides for measures to be reviewed during their period of validity, and the Commission says that, in 2013, ten interim reviews were initiated, three were concluded with confirmation or amendment of the duty, and three interim reviews were concluded with the termination of the measure.

— "Other" interim reviews

The Commission says that four "other" reviews were initiated in 2013, whilst three were concluded.

— New exporter reviews

The Regulation allows reviews to establish an individual dumping margin or countervailing duty for those undertakings which did not export during the investigation period, and, where an exporter can establish that it started to export to the EU after that period, it is generally entitled to a duty lower that the country-wide duty. The Commission says that two new exporter reviews were initiated in 2013, whilst one was concluded.

— Absorption investigations

Where it appears that, following an investigation and prior to or following the imposition of measures, export prices have decreased or there has been no or insufficient movement in the resale prices or subsequent selling prices of the imported product in the EU, an "absorption" review may be opened to examine whether the measure has had an effect on those prices, and dumping margins may be recalculated and the duty increased. However, the Commission says that there were no such reviews in 2013.

— Circumvention investigations

The Commission says that the Regulation allows investigations to be re-opened if there is evidence to show that measures are being circumvented, and that three such investigations were initiated in 2013, whilst 12 were concluded with an extension of duty and three were concluded without such an extension.

— Safeguard investigations

The Commission says that there was no activity in this area in 2013.

13.7 The Commission also mentions its recent review of the EU's current system of Trade Defence Instruments, and draws attention to the Communication and draft Regulation which it put forward in April 2013,[64] which we reported to the House on 21 May 2013, and which is currently subject to the ordinary legislative procedure in the European Parliament and Council.

The Government's view

13.8 In his Explanatory Memorandum of 26 February 2015, the Minister for Trade and Investment at the Department for Business, Innovation and Skills (Lord Livingston of Parkhead) says that the document relates primarily to past decisions taken by the EU or measures in place against third countries, and has no policy or financial implications.

Previous Committee Reports

None.





64   See (34838), 8493/13 and (34863), 8495/13: Third Report HC 83-iii (2013-14), chapter 6 (21 May 2013). Back


 
previous page contents next page


© Parliamentary copyright 2015
Prepared 13 March 2015