BRUSSELS – In June, stronger trade defense instruments (TDI) came into force in the European Union that enable the trade bloc to respond to dumping and “unfair subsidies,” the Foreign Agriculture Service (FSA) of the US Dept. of Agriculture reported.
EU Trade Commissioner Cecilia Malmstrom said the new TDIs provide the EU with tools to efficiently defend member states’ industries from unfair trade practices.

“We believe in open, rules-based trade,” Malmstrom said. “Now, we are better equipped to stand up for our companies if other countries don’t stick to the rules.”

Significant changes include:

• A new regulation that allows the European Commission to disregard the lesser duty rule that limits the level of anti-dumping and anti-subsidy duties to the level of the injury margin, even if the dumping margin is higher. The new regulation can be applied in the case of distortions to the raw material price of the investigated product when a single raw material accounts for at least 17 percent of the product concerned.
• A requirement that the Commission consider social and environmental factors when calculating the target selling price for the EU industry. The cost of production will reflect the costs of complying with multilateral environmental agreements and the International Labor Organization Conventions.
• Granting EU trade unions the power to lodge complaints jointly with the EU industry.
• An investigation period shortened to seven months from nine months.
• New rules that allow the Commission to launch investigations on its own without a complaint lodged by the industry in cases where there are threats that foreign governments, for example, are preventing EU industry from using TDIs.

“The EU believes in open and fair trade, but we are not naïve free traders…And now we have new and improved trade defense rules in our arsenal to face down some of today’s challenges in global trade,” said European Commission President Jean-Claude Juncker.

“Make no mistake — we will do whatever it takes to defend European producers and workers when others distort the market or don’t play by the rules.”