The new. Antidumping. Methodology. Prof. Dr. Frank Hoffmeister VUB / HoU H 3

Transcription

1 The new Prof. Dr. Frank Hoffmeister VUB / HoU H 3 Antidumping Methodology

2 I. Origin Commisison proposal [COM 2016 (271)] of November 2016 EP support June 2017 and Council agreement October 2017 Entry into force of Regulation 2017/2321 on 20 December 2017

3 II. Structure If there are significant distortions in the country of origin of the costs of production (1) Then the Commission shall construct normal value. By using alternative benchmarks for each cost of the relevant factors of production of the exporting producers (2).

4 III. Significant Distortions (1) All WTO countries (for non-wto countries analagoue country method, Art. 2 (7) BR) Specific Report on China adopted December 2017 (likely next report on Russia); industry can rely on that report (Art. 2 (6a) (d) BR) Complaints can also contain evidence on other countries

5 III. Significant Distortions (2) Reported Prices or Costs, including for Raw Materials and Energy, are not the result of free market forces (Art. 2 (6a) (b) BR). 6 criteria (significant presence of SOEs on the market; State presence in firms interfering with costs and prices; public measures favouring domestic suppliers or influencing free market forces; lack or discriminatory application of bankruptcy, corporate or property laws; distorted wage costs; access to preferential financing)

6 Significant Distortions (3) Criteria are not exhaustive Broad Discretion of the Commission First cases relate to China, based on the December 2017 report.

7 IV. Alternative benchmark (1) 3 sources (Art. 2 (6a) (a) BR) to identify undistorted production costs, SG&A and profit. Appropriate representative country with a similar level of economic development Undistorted international benchmark Domestic costs, if positively shown that they are not distorted

8 IV. Alternative benchmark (2) 1. Appropriate representative country - Information must be "readily available" - World Trade Atlas; Orbis; ILO, World Bank: no verification. - When several countries are eligible, COM should chose the one with an adequate level of social and environmental protection; Annex VIII of GSP Regulation as guiding aid. - First examples: Turkey, Mexico, Thailand

9 IV. Alternative benchmark (3) 2. International benchmark Where there is a (undistorted) world price (commodities) E.g. London Metal Exchange; specialised data. Undistorted international cost?

10 IV. Alternative benchmark (4) 3. Domestic costs - Exporting producer (or government) must show evidence that there is no significant distortion; either country wide, or sector wide. - COM may hear such a "defence" in the investigation if raised

11 V. Procedure (Art. 2 (6a) (e) China report on file as factual evidence upon initiation (37 days for GOC to comment) COM note to the file on factors of prodution and representative country Comments by interested parties (10 days) 2nd COM note to the file Determination at provisional/definitive stage.

12 VI. First Practice 1. Expiry Reviews - Aluminium Foil, Organic Coated Steel, Tube or Pipe Cast Fittings, Ceramic Tableware, Tungsten Electrodes. 2. New (Article 5) Cases - Hot-rolled Sheet Steel Piles.

13 VII. Conclusion New Methodology is a compromise It keeps alternative benchmarks in cases of significant distortions Innovation: country-report. Rights of Defence of interested parties safeguarded during the process.