Industry News

On 13th December the Permanent Representatives Committee (Coreper)* agreed the EU Council's negotiating position on a proposal to modernise the EU's trade defence instruments. 

The proposed regulation includes:


- A four week notice period of the imposition of provisional duties to provide increased 'transparency and predictability' (so called pre disclosure).

- Authority for the European Commission to initiate investigations without an official request from industry when a threat of retaliation is deemed to exist.

- A shorter investigation period.

- The right for importers to be reimbursed duties collected during an expiry review in the event the review decides against continuing the trade defence measures.

- The potential to apply higher duties in cases where there are raw material distortions and these raw materials, including energy, account for more than 27% of the cost of production in total and more than 7% taken individually. This would allow the non-application of the Lesser Duty Rule (LDR) whereby duties must not be higher than necessary to prevent injury. The imposition of higher duties would be based on a target profit and also be subject to a Union interest test.


Peter Žiga, the Slovakian minister currently in charge of trade and President of the Council, called the decision "a major breakthrough" and said it was a "crucial step towards a solid solution that would help EU producers cope with unfair competition and practices".
The Council’s position will now go to the European Parliament, where MEPs can almost certainly be expected to propose amendments. Christofer Fjellner, a previous rapporteur for the Parliament's international trade committee, called for a rapid resolution saying “we cannot afford another stalemate, turning the reform into a Sleeping Beauty".
The urgency for the Council, European Parliament and Commission to arrive at an agreed position on trade defence is clear, given China’s application to the WTO Dispute Settlement Body over market economy status.
Eurofer, the EU steel producers' association, reacted immediately to condemn the position as inadequate. "The new provision on the LDR is neither efficient or robust, nor effective or balanced, nor is it adequate to address situations in which market conditions do not prevail."
*Coreper comprises the head or deputy head of mission from each EU member state.