Brussels, 20 June 2017 – MEPs in the European Parliament will today vote on a committee report regarding the Commission's proposal for a new ‘non-standard’ methodology to be used in anti-dumping proceedings against non-market economies. AEGIS Europe urges MEPs to recognise the need for clear definitions, formalised due process, and an unambiguously effective non-standard anti-dumping methodology.
There is a broad consensus that China has not become a market economy despite the commitments it took under its WTO Accession protocol in 2001. Consequently, “despite the expiry on 11 December 2016 of one subparagraph of Section 15, the remaining provisions of the protocol continue to allow the use of a non-standard anti-dumping methodology when market economy conditions are not met”, emphasised Ines Van Lierde, Chair of AEGIS Europe.
The original proposal from the European Commission referred to ‘significant distortions’ as the justification for the use of a non-standard methodology. However, “the proposal failed to provide a satisfactory definition as to what this actually meant, and the link between these significant distortions and the process to ensure that an effective non-standard methodology would apply was weak”, said Mrs Van Lierde.
Rapporteur Salvatore Cicu’s draft report for the Committee on International Trade (INTA) of the European Parliament explains the principle behind the report stating, “it is crucial to understand whether the concept and the definition of ‘significant distortions’ is clear enough and legally strong to justify the use of the alternative methodology”.
AEGIS Europe believes that a meaningful three-step process should appear in the legislation:
- Clear definition as to what counts as ‘significant distortions’ in a country or sector;
- Formalisation of the process for identifying one or more of these distortions and additional support to EU SME sectors in this regard;
- Use of a methodology after distortions are found which directly makes use of third country costs, except when exporting producers can prove no distortion.
“Europe’s manufacturing industries are relying on the European Parliament to stand up for them at this crucial juncture of the reform process. A robust, predictable and stand-alone anti-dumping methodology will ensure our continued global competitiveness. The burden of proof must not be shifted to Europe. We hope that they can come to a meaningful agreement on the draft report today”, concluded Mrs Van Lierde.
ABOUT AEGIS EUROPE
AEGIS Europe is a grouping of nearly 30 industrial associations dedicated to ensuring that EU policymakers work towards free and fair international trade. AEGIS members are leaders in sustainable manufacturing and account for more than €500 billion in annual turnover and millions of jobs across the EU. To find out more about AEGIS Europe please visit www.aegiseurope.eu.