Introduction to Trade Remedies 2017

Trade Remedies WTO Anti-Dumping Agreement allows countries to impose targeted duties to protect their domestic industry from injury caused by dumped products (products which are sold in the importing country at below the domestic price in the exporting country). for example – certain steel imports from China, Bioethanol from the US WTO Agreement on Subsidies and Countervailing Measures allows countries to impose targeted duties to protect their domestic industry from injury caused by products which benefit from a specific subsidy in the exporting country. for example – stainless steel bars and rods from India WTO Agreement on Safeguards allows countries to impose measures (usually duties or import quotas) to protect the domestic industry from serious injury caused by an unexpected surge in imports. These measures apply to all imports of the product. for example – salmon (now expired) 3 3

Trade Remedies The Issue Our objectives To ensure continuity and avoid disruption, the UK needs to prepare for all negotiation outcomes and make sure we can operate a fully- functioning trade remedies framework when we exit the EU The WTO agreements on anti- dumping, anti-subsidy and on safeguards provide a framework for how to apply trade remedies, but provide discretion in some areas of application The Issue To develop a UK trade remedies framework that enables the UK to be a proponent of free trade whilst providing a safety net for its industries if dumped, subsidised or surges of imports cause injury to UK producers Ensure the appropriate handling of existing EU trade remedies and ongoing investigations Our objectives 4 4

What is currently in place? At the moment, the Directorate-General for Trade of the European Commission (“DG Trade”) is the body responsible for investigating trade remedies cases. There is currently no domestic trade remedies function to take on this responsibility once the UK has left the EU. 5 5

What are we looking to create? We are committed to creating a UK trade remedies function that will be: Objective and unbiased, but able to deliver recommendations to Government Ministers. Skilled and experienced, able to directly recruit and train a pool of specialist staff. Business-friendly and accessible, acting as a single point of contact for initiating cases. The trade remedies function will have an appropriate appeals process. We will ensure this aligns with both international and domestic best practice. We will provide continuity on the EU trade remedies cases that matter to UK businesses 6 6

Balance and proportionality Tackling unfair and injurious imports, while ensuring that measures do not impose disproportionate costs on downstream users and consumers Market share threshold: Ensures UK producers have a sufficient share of the total market before an investigation can be initiated Economic interest test: Addresses wider economic considerations before provisional or definitive measures are applied (Union Interest Test in the EU) Injury based duty: Ensures that the level of duty imposed on importers is proportionate i.e. only to the extent necessary to remove the injury domestic industry 7 7

Market share threshold Ensures UK producers have a more than a de minimis share of the total market before an investigation can be initiated Filters out cases which are unlikely to result in measures being applied, in order to focus investigation resources where they are most likely to be needed 8 8

Economic interest test Assesses wider economic considerations before provisional or definitive measures are applied (‘union interest test’ in the EU) Considered as part of the investigation Balance the need to address injury caused to producers while taking into account the interests of domestic producers and regional impacts, as well as those of other interested parties such as user industries and consumers 9 9

Injury based duty Ensures that the level of duty imposed is proportionate i.e. only to the extent necessary to remove the injury to the domestic industry Known as the ‘Lesser Duty Rule’ in the EU system Rate of duty may differ according to different exporters or countries, to reflect the fact that one exporter or country may be dumping or subsidising to a greater or lesser degree than another 10 10

Transitioning exiting EU measures 87 cases 136 measures 25 countries Note : one case may have several measures against different countries

Transitioning exiting EU measures Next steps When the UK leaves the EU, it is important that we provide certainty to UK business and avoid exposing them to injury from known unfair trade practices. We need UK companies to tell us which measures matter to them. We will shortly issue a Call for Evidence to obtain information to enable the Government to assess which measures matter to the UK and should be effectively maintained. All other measures will be terminated because they are not relevant for the UK market and will increase costs for buyers and consumers. The Government is committed to maintaining a fair and transparent approach to the handling of these existing remedies and to minimizing trade disruptions to our trade partners and UK companies. 12 12

Further Engagement We have an ongoing programme of stakeholder engagement. If you would like to be involved in further discussions, arrange a meeting or would like to raise any specific points, please contact us at traderemedies@trade.gsi.gov.uk