In its annual report on its trade defence policy, published on Thursday 28 March, the Commission reviewed a year marked by several major challenges, including the imposition of 25% tariff sanctions on steel by the United States.
The 2018 report describes the EU's anti-dumping, subsidy and safeguard activities, but also the trade defence activities of non-Member States against the Union.
Out of 14 new cases handled during the year, the institution applied measures in six cases.
All these measures, the Commission points out, are largely aimed at China.
“Open economies need effective tools to enforce fair competition, especially at a time where some countries don't want to play by the rules”, said Trade Commissioner Cecilia Malmström.
In total, the European measures in force at the end of 2018 would effectively protect 320,000 direct industrial jobs, bringing in more than €1.5 billion to the Community budget in duties collected.
2018 was also the year of implementation of the new EU Trade Defence Instruments Regulation, applied from 8 June, allowing, where appropriate, higher customs duties to be imposed, in order to better protect EU producers against unfair competition (see EUROPE 12002/7).
Assessment since 2014
The report also proposes an assessment by the Juncker Commission on trade defence. “There was probably no period that was more challenging than the one between 2014 and 2019”, the institution notes, highlighting in particular the problem of global overcapacity in steel production, which has led to an increasing demand for defence measures.
Between November 2014 and December 2018, 170 cases were raised and 95 measures applied, extended or renewed, preserving more than 124,000 jobs.
However, the Commission points out that the EU's duties are lower than those of its trading partners under the ‘lesser duty rule’, taking as an example its steel duties, which range from 29% to 45%, while the corresponding average applied by the United States is 54% to 87%.
In February, the WTO warned of a slowdown in world trade in the first quarter of 2019; “Policy makers should be on guard for a sharper slowdown if current trade tensions remain unresolved. It is critical for governments to work through their differences and show restraint”, said its Director General, Roberto Azevêdo.
See the report: https://bit.ly/2OvOCuC and its annex: https://bit.ly/2uzD1S2 [EN]. (Original version in French by Hermine Donceel)