On 20 December 2017, a revised legislation on trade defence entered into force introducing a new way of calculating whether dumping has occurred in imports into the EU from countries where the economy is distorted owing to state interference.

The new methodology can apply to any WTO member, it is based on the existence of significant distortions in the economy of the exporting country as a result of state interference. To demonstrate the distortions the Commission may prepare reports describing the economies of certain countries or sectors in this context.

In parallel with the publication of changes to the EU’s anti-dumping legislation, the Commission has also released the first country report dedicated to China, this report and others that will be prepared may be used by EU industry as evidence to request the use of the new methodology in anti-dumping investigations. In the course of each investigation, the Commission will examine if the use of the new methodology should be applied based on all the evidence in the file. All parties concerned by an investigation, including the government of the country concerned as well as exporting producers, will have the opportunity to comment on and disprove any findings made in the reports in the course of the relevant investigations.

The new methodology will also strengthen the EU anti-subsidy legislation so that, in future cases, any new subsidies revealed in the course of an investigation can be investigated and included in the final duties imposed.

Davide Scavuzzo