Commission proposes changes to the EU’s anti-dumping and anti-subsidy legislation

The European Commission has recently presented a proposal for a new method for calculating dumping in imports from countries where there are significant market distortions, or where the state has significant influence on the economy. The goal is to make sure that Europe has effective trade defence instruments that are able to deal with the overcapacities in the international environment, while respecting the EU’s international obligations in the legal framework of the World Trade Organization.

According to the current rules, in normal market circumstances dumping is calculated by comparing the export price of a product brought to the EU with the domestic prices or costs of the product in the exporting country. This approach will be complemented by the new country-neutral methodology, which means that it will apply the same to all WTO members and will take into account significant market distortions in certain countries, due to state influence in the economy. Several criteria will be considered when determining market distortions, such as state policies and influence, the widespread presence of state-owned enterprises, discrimination in favour of domestic companies and the independence of the financial sector.

The Commission has also proposed a strengthening in the EU anti-subsidy legislation so that in future cases, any new subsidies revealed in the course of an investigation can also be investigated and included in the final duties imposed. The European Parliament and the Council will now decide on the proposal through the ordinary legislative procedure.

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