EU regulation on protection against dumped and subsidized imports

In response to numerous questions posed by several members, the European Union delivered a statement introducing its new regulation (EU) 2017/2321 on protection against dumped and subsidized imports from non-EU countries (G/ADP/N/1/EU/3/SUPPL.2).

The Regulation, which entered into force last December, amends the previous basis upon which the European Union determined "normal value" (i.e. the home market price used as comparison to the export price in order to determine whether and to what extent dumping is taking place) for imports from non-market economy countries. This has been replaced with a new methodology for determining normal value where "significant distortions" exist, i.e. cases where reported prices or costs, including the costs of raw materials and energy, are not the result of free market forces because they are affected by substantial government intervention. 

The EU intervention addressed questions regarding how the new regulation will be applied, how the EU will determine "significant distortion", how it will calculate normal value in such circumstances, how the EU will apply "social and environmental protection" factors in selecting appropriate representative countries in determining normal value, and the preparation of EU Commission reports on significant distortions in particular countries. The EU stressed that the actual application of the new methodology will depend to a large extent on the particular circumstances of a country where the exported good originates and the extent of government intervention.

One member said the European Union's answers raised further questions and that the amendments to the earlier EU legislation were of serious concern, particularly the concept of "significant distortion". Another said it continued to believe the EU amendments were in violation of WTO rules, especially in the context of evolving WTO jurisprudence, while a third said the new regulation increases uncertainty for exporters. Others expressed similar concerns, while one member said that the discussion highlighted that appropriate tools are available to members under WTO rules to address certain distortions which impact international trade.

Semi-annual reports of members on anti-dumping actions

China

Japan raised concerns about a Chinese anti-dumping (AD) investigation initiated on acrylonitrile-butadiene rubber last November. China noted that the investigation is still ongoing and that China would proceed in a reasonable and objective manner strictly in line with ADA requirements.

Brazil raised concerns about China's decision last August to initiate an investigation on imports of Brazilian broiler (chicken) products. China said it understood the importance of the Chinese broiler market for Brazilian exporters but that there has been a significant decline in domestic prices coupled with an increase in Brazil's share of the overall market which has injured domestic producers.

Indonesia

Kazakhstan expressed concerns about Indonesia's decision to extend an AD order on imports of hot-rolled coil from Kazakhstan, Russia and Belarus, all members of the Eurasian Economic Union (EAEU). Indonesia said it decided to apply the measure to all EAEU customs union members to ensure the effectiveness of the AD measure and avoid circumvention of the duties.

Ukraine questioned Indonesia on its decision in March to initiate a sunset review on hot-rolled plates from Ukraine.

Israel

Turkey expressed concerns about the decision by Israeli authorities to issue a preliminary AD determination on imports of Portland cement from Turkey. Israel replied that it has not applied any provisional measure and that it would respond to Turkey's concerns in writing.

Pakistan

Brazil quizzed Pakistan on its decision in February to impose AD duties on uncoated writing and printing paper from Brazil. Pakistan replied that it had carried out the investigation in line with requirements under the WTO's Anti-Dumping Agreement (ADA).

Ukraine

Russia quizzed Ukraine on its decision to extend an AD order on imports of ammonium nitrate from Russia as well as its decision to initiate an AD investigation on carbamide-formaldehyde from Russia. Ukraine replied that its interim review on ammonium nitrate was in full compliance with ADA rules as well as national law, and that the ongoing investigation into carbamide-formaldehyde is being conducted in line with ADA requirements.

Turkey cited concerns about an ongoing Ukrainian investigation on imported syringe injectors from Turkey. Ukraine said Turkish exporters had an opportunity to present evidence and that public hearings will be held where they can express their views.

United States

Japan reiterated its concerns about longstanding US AD duty orders on imported Japanese goods.  The United States said that most of the measures reviewed have resulted in the termination of the dumping orders.

Indonesia voiced concerns about the US Commerce Department's use of a practice known as "particular market situation" in its investigations, in particular on biodiesel. The United States said particular market situations existed with regards to home market sales as well as reported costs of palm oil used in biodiesel production.

Korea questioned the US use of "adverse facts available" in its AD investigations, and in particular the application of total "adverse facts available". The United States said it was engaging on the issue with Korea bilaterally, but that it was inappropriate to comment further since the matter was currently in litigation.

Preliminary and final anti-dumping actions: notifications

Ukraine posed questions with regards to a US investigation on carbon and alloy steel wire rod from Ukraine and duties imposed on the product. The United States said that it had responded to Ukraine's questions on the matter in writing on 23 April.

Other business

Under "other business", Peru raised concerns regarding an investigation initiated by Brazil last December on biaxially-oriented polyethylene terephthalate (PET) from Peru and Bahrain. Brazil said it would forward Peru's concerns back to its capital and discuss the matter bilaterally if requested.

New chair

The committee confirmed the appointment of Ms Karine Mahjoubi Erikstein (Norway) as the new chair of the committee for 2018.

Next meeting

The next meeting of the Committee on Anti-dumping Practices will take place in the week of 22 October.