MEPs have backed the European Commission's proposal to introduce tougher anti-dumping rules, but have suggested a number of amendments to the new rules for calculating import duties.
 
In November 2016, the Commission proposed a non-exhaustive list of examples to be used to identify significant market distortions. Under the proposals, where a significant distortion is recognized in an exporting country, the Commission would set a price for the product by referring either to the costs of production and sale prices in a country with similar levels of economic development, or to appropriate undistorted international costs and prices.
 
The Commission would also draft specific reports on countries or sectors, which would describe distortions.
 
Following a discussion on June 20, members of the European Parliament's Trade Committee said that an exporting country's fiscal, social, and environmental standards should be taken into account when assessing its trade practices.
 
The committee recommended that anti-dumping investigations should take into account the exporting country's compliance with international labor, fiscal, and environmental standards. In addition, investigations should consider whether the country applies potentially discriminatory measures against foreign instruments, and if its company law, property rights, and tax and bankruptcy regimes are effective.
 
The committee also argued that the Commission should issue a detailed report describing the specific situation in a certain country or sector for which the calculation of duties will be applied. It added that there should be no additional burden of proof on EU companies in anti-dumping cases on top of the current procedure for requesting a Commission investigation.
 
The amendments were approved by 33 votes to three, with two abstentions. Parliament will start talks with EU ministers based on this mandate, provided there are no objections at the July plenary session.
 
Rapporteur Salvatore Cicu said: "EU businesses deserve better protection from unfair trade practices, which endanger jobs and investments all over Europe. Free global trade is only to our benefit if everyone plays by the rules. By creating clear and tough anti-dumping rules, we can protect citizens from the negative effect of globalization."