On Wednesday 3 May, in view of the negotiations with the European Parliament on this dossier, the Committee of Permanent Representatives to the EU (Coreper) approved the Council position on the new methodology for calculating what constitutes anti-dumping. This position seeks to resolve the question of how China should be treated as part of the EU’s anti-dumping investigations. It came at the time of the expiry of the provisions relating to China’s protocol of accession to the WTO as it was proposed by the Commission in November 2016 (see EUROPE 11664).
The Maltese Minister for the Economy and Acting President of the Council, Christian Cardona, explained, “we gave our support to a new, non-discriminatory anti-dumping methodology that will help ensure that imported products are sold at a fair and equitable price in the EU, no matter where they come from. This will strengthen Europe's trade defence instruments and will help protect jobs and enhance competitiveness”.
This new methodology seeks to be neutral when assessing all third countries and identifying market distortions in third countries resulting from state intervention in these countries. It also aims to tackle the damages caused to European industry, in compliance with the rules contained in the WTO’s antidumping agreement.
The Council’s position reflects to a large extent the main principles put forward by the Commission. It establishes a non-exhaustive list of examples which are used to identify significant market distortions, such as: state policies and influence, widespread presence of state-owned enterprises, discrimination in favour of domestic companies, lack of independence of the financial sector, inadequate enforcement of bankruptcy, corporate or property laws.
According to the terms of the Council position, when a significant distortion is recognised in an exporting country, the Commission will be able to correct it. It will set a price for the product by referring either to the costs of production and sale prices in a country with similar levels of economic development or to appropriate undistorted international costs and prices.
The Commission will also draft specific reports on countries or sectors describing distortions. In line with current practice, it will be for EU firms to file complaints, but they will be able to use the Commission’s reports to support their case.
The Council will be able to begin “trialogue” discussions with the European Parliament on the basis of the agreement on the position, as soon as the Parliament determines its own negotiating position.
The examination of the new anti-dumping methodology runs in parallel with a separate institutional negotiating process on the modernisation of the EU's trade defence instruments and was proposed in April 2013. This trialogue negotiation began in March (see EUROPE 11751) following the fragile agreement in principle reached at the Council in December 2016 (see EUROPE 11688). (Original version in French by Emmanuel Hagry)