Four conditions must be met before measures can be imposed.

 

- It must be shown that the imports are being dumped (anti-dumping) or subsidised (anti-subsidy).

 

- It must be shown that the imports have a negative impact on the economic situation of the EU industry concerned, that is, that there is injury. It is not sufficient to show that one single company suffers from unfair imports. Rather, the negative impact of imports must be widespread within the EU industry.

 

- The investigating authorities need to demonstrate that there is a causal relationship between the imports and the injury to the EU industry.

 

- The imposition of measures must pass the ‘Union interest test’. The Union interest test is a public interest test. Measures are normally in the public interest if there is dumping/subsidisation, injury and a causal link. In exceptional circumstances, however — for instance if measures would have disproportionate consequences for users of the imported products — they would not be imposed because they would be against the interest of the Union

The Union interest test is an obligation under EU legislation but not a requirement of the WTO. It represents an important element that improves on basic WTO rules and ensures the proportionality of any measures.

 

Sum up:

 

Four conditions need to be met in order to impose anti-dumping or anti-subsidy measures.

 

1 - Dumping/subsidisation is happening.

 

2 - EU industry is suffering injury.

 

3 - A causal link exists, proving that the injury is caused by the imports and not by other factors.

 

4 - Measures should not be against the overall interest of the Union.

 

Source: “TDI Trade defence instruments, Anti-dumping & Anti-subsidy - A Guide for Small and Medium-Sized Businesses” by the European Commission