EUROPEAN COMMISSION Brussels, 15.6.2016 SWD(2016) 197 final COMMISSION STAFF WORKING DOCUMENT Accompanying the document REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT THIRTEENTH REPORT



OVERVIEW OF THIRD COUNTRY TRADE DEFENCE ACTIONS

AGAINST THE EUROPEAN UNION FOR THE YEAR 2015 {COM(2016) 392 final}



COMMISSION STAFF WORKING DOCUMENT Accompanying the document REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT THIRTEENTH REPORT



OVERVIEW OF THIRD COUNTRY TRADE DEFENCE ACTIONS

AGAINST THE EUROPEAN UNION FOR THE YEAR 2015 Annex I – Trends and main cases by country (By numbers of measures in force per country, then by alphabetical order) 1.INDIA 1.1.Overall trends India remains an important user of the trade defence instruments ('TDI') with 19 measures, respectively 15 anti-dumping ('AD') and 4 safeguards ('SFG'), in force at the end of 2015. Compared to 2014 India has considerably reduced its activity in 2015. In 2015 India initiated 2 new SFG investigations and imposed 2 new SFG measures (one being only provisional) and 1 new AD measure. 1.2.Main cases The SFG case on hot rolled flat sheets and plates, with economic interest for the European Union ('EU') producers of around € 160 million, was initiated in December 2015. The European Commission ('Commission’) has intervened at initiation and in the public hearing in February 2016. The main issue of concern is a doubtful causal link between any injury suffered and increased imports. The hot rolled flat steel SFG case, involving an economic interest for the EU producers of around € 20 million was initiated in September 2015 with provisional measures imposed upon initiation. The Commission has intervened both at the beginning of the investigation and also at a hearing in November 2015. The main issues appear to concern the injury picture, the lack of causal link, as well as the performance of the domestic industry. The Commission will continue to closely follow both cases. The Commission continued in 2015 to intervene in the two AD cases initiated in 2014: 2-ethyl-hexanol and normal butanol (both chemicals). In both these cases there is no clarity as to the causal link between allegedly dumped imports and any injury suffered by the Indian industry. In particular, the reason for the industry’s difficulties is clearly due to the unavailability of propylene, the main raw-material for both products, which forced a shut-down of production of more than 200 days during the period analysed. Despite the efforts, measures were imposed for both cases in February 2016. These cases are a typical example of what the Commission considers an abuse of the instrument.

2.CHINA 2.1.Overall trends After the high and politically sensitive TDI activity by China in 2013, in 2015 China's use of TDI against products originating in the EU was comparable to that in 2014. Two new AD investigations were initiated. In addition China initiated 2 reviews of existing AD measures. China did not impose definitive AD or anti-subsidy ('AS') measures in 2015, as the investigations initiated are still ongoing. Provisional measures ranging between 23.4% and 29% were imposed against EU exports of unbleached sack kraft paper. The total number of Chinese measures in force increased by one and is at 19. Thus China is the second country in terms of the number of measures in force against the EU, followed closely by the United States and Brazil. 2.2.Main cases The Commission actively monitored and adequately intervened in the polysilicon case. This case was initiated by China following the EU's solar panels case and it was concluded in March 2014 with a price undertaking agreement between the exporting European producer and the Chinese Ministry of Commerce. Since the establishment of the agreement the Commission constantly addressed the Chinese authorities in order to ensure respect of the terms of the agreement, notably the detrimental systematic delays in the approval of the authorisation of the minimum import price adjustments. In 2015, China initiated 2 new AD proceedings. The first case was opened in April regarding imports of unbleached sack kraft paper. The Commission was closely involved in the investigation and submitted comments to the investigating authority, notably regarding the product definition. Likewise, the Commission followed closely and intervened in the case against imports of grain oriented electrical sheet, which was initiated in July 2015. It is noteworthy that this case was initiated following the EU’s investigation on the same product. Both investigations are still ongoing. China also initiated 2 AD reviews. An interim review was initiated against imports of photographic paper, while an expiry review was started against fasteners originating in the EU. Note that the Commission recently repealed its AD measures against Chinese fasteners which were originally imposed in January 2009, i.e. a few months before the introduction of the Chinese measures. Both reviews are still ongoing. Finally, AD duties in force against adipic acid were extended for a period of 5 years. The Commission will continue monitoring all these measures and will intervene as appropriate. 3.BRAZIL 3.1. Overall trends Following a peak of initiations in 2014 (7 new cases), Brazil has gone back to previous years' levels with the initiation in 2015 of 4 new investigations against the EU. Brazil however remains one of the major users of TDI against the EU in terms of new initiations.

Also the number of measures imposed in 2015 was extremely high due to the large number of new initiations in the previous year. Brazil imposed 8 new AD measures as opposed to none last year and became the country having imposed the highest number of measures against the EU in 2015. Brazil currently has 16 measures in force against 10 EU Member States as opposed to 9 measures last year. 3.2. Main cases The Commission closely monitored the new and ongoing cases and intervened on a number of occasions, through written submissions, letters and via participation in public hearings. In particular, the Commission was deeply involved in the defence of the Emulsion Styrene Butadiene Rubber (E-SBR) case. Five EU Member States were concerned by this AD investigation and an economic interest for the EU producers of around € 80 million was potentially at stake. Following the Commission's actions, in joint efforts with the industry, measures were imposed (the duty rate imposed to cooperating companies ranges from 0% to 9%) but suspended for 1 year for reasons of public interest. If suspended for a second year, measures would automatically be terminated. There were also other cases that required the Commission's attention, such as galvanized steel wire from Sweden and plastic tubes for blood collection from the United Kingdom and Germany. In the end measures were imposed in both cases. Other measures imposed in 2015 concerned butyl acrylate from Germany, elastomeric rubber pipes from Germany and Italy, offset printing plates from Belgium, Germany and the UK, adipic acid from Germany, France and Italy and monobutyl ethers of ethylene glycol from Germany. Finally, a new Anti-circumvention (‘AC’) case was initiated against graphite electrodes produced in the United Kingdom. Measures claimed to be circumvented were originally imposed to China. The investigation was concluded in February 2016 without the imposition of measures. 3.3. Bilateral Trade Defence dialogue During 2015 the Commission had a first bi-lateral meeting with Brazil in order to exchange views and information on respective Trade Defence policy and practices. The discussion covered topics such as Lesser Duty Rule, subsidies, injury and causality. Both Brazil and the EU agreed that this type of dialogue should be continued in the future given the mutual interest. 4.UNITED STATES OF AMERICA 4.1.Overall trends In 2015 there were 18 United States’ trade defence measures in force affecting EU exports. The United States imposed 2 provisional measures against imports of corrosion-resistant steel from Italy (AS) and certain uncoated paper from Portugal (AD). It also initiated 4 (3 AD and 1 AS) investigations against imports of steel (hot rolled steel, cold rolled steel flat products and corrosion-resistant steel) and 1 AD investigation against import of uncoated paper of EU origin. It should be recalled that in 2012 the United States signed a Roadmap, with the aim to remove the use of zeroing in United States administrative reviews. However, as in 2013 and 2014, in 2015 the United States continued to apply this methodology, but this time in the context of targeted dumping findings. Although in 2015 targeted dumping was applied only in two out of 11 AD administrative reviews (as compared to 4 out of 12 in 2014) its continued application by the United States merits further monitoring by the Commission. 4.2.Main cases

As it was mentioned, the vast majority of the new investigations initiated in 2015 against EU manufacturers targeted exports of steel (i.e. cold-rolled steel, hot-rolled steel and corrosion-resistant steel). According to US data EU exports for these products originating from (the United Kingdom, the Netherlands and Italy) amount to about € 600 million. The Commission has been monitoring very closely both cases from their initiation and provided legal and administrative support to both the Member States concerned and the affected companies. In November 2015 AS provisional measures were imposed against Italian exporters in the investigation concerning corrosion-resistant steel. The final measures in all above mentioned steel cases have not yet been adopted. The Commission is also closely cooperating with the affected company in the AD investigation initiated in 2015 against imports of uncoated paper from Portugal. Provisional measures were imposed in August 2015 and the final determination is expected in March 2016. It is worth to mention that both South Korea and China challenged at the WTO the United States methodology used in targeted dumping findings (WTO dispute DS464: US – AD and AS measures on large washers from Korea, and dispute DS471: US – certain methodologies and their application to AD proceeding involving China). The EU intervened as third party in both cases in 2015. The Commission will continue to closely monitor these disputes as they involve a systemic issue in relation to the United States practice in AD investigations. 5.TURKEY 5.1.overall trends Turkey is still an active user of trade remedies. Whilst in previous years the main instrument affecting EU exports to Turkey was SFG, this practice seems to have slightly changed in 2015. Indeed, this year 3 AD measures were imposed or prolonged while only 1 new SFG measure was imposed. Furthermore, 1 AD and 3 SFG measures lapsed this year. In 2015 Turkey also initiated an AC investigation on imports of plywood consigned from Bulgaria. Furthermore, it concluded 2 AC investigations initiated in 2014 on certain woven fabrics with the imposition of measures against Bulgaria and Poland. It also has to be mentioned, even if not strictly forming part of this report, that Turkey introduced several value-based surveillance measures (on paper and polyvinyl chloride floors). 5.2.main cases 5.2.1.Anti - dumping Turkey initiated 1 AD investigation with a high economic interest, € 500 million of EU exports, on hot rolled flat steel from France, Romania and Slovakia (as well as China, Japan, Russia and Ukraine). Despite its weak basis, Turkey decided to impose provisional measures in August 2015 only against Slovakia (and non-EU countries as China, Japan and Russia). The imposition of definitive measures was proposed in January 2016, confirming the provisional findings as far as EU MS are concerned. However, at the time of drafting this report, no final decision was taken yet. The Commission intervened on various occasions including in hearings, at technical as well as at high political level, in close coordination with the representatives of the industry. Given the finding of no dumping on exports from France and Romania the EU interest value at provisional stage has diminished significantly. Turkey also imposed definitive AD duties on laminate flooring from Germany. Furthermore, the AD measures on imports of Polyvinyl chloride (PVC) from Germany were extended following a review. The AD measures on mono ethylene glycol from Bulgaria lapsed in 2015 after being in force for 5 years. 5.2.2.Safeguards and surveillance In 2015 Turkey initiated 1 new SFG investigation, which is still ongoing, on imports of porcelain and ceramic tableware and kitchenware. The SFG investigation on wall paper was concluded with the imposition of definitive measures in the form of a fixed duty, at a prohibitive level corresponding to around 70% of the product's price. On the request of the Commission, WTO consultations were held in order to find a solution in relation to EU exports which are not causing problems to domestic producers. This process was still on-going at the time of writing this report. The EU welcomed the fact that the Turkish SFG investigation on paper was concluded without imposition of SFG measures as EU exports of €175 million were involved. However, at the same time, Turkey imposed a value based surveillance measure on the same products covered by the investigation. This is not the only case where Turkey imposed value based surveillance measures (also on PVC floors, for example). Unfortunately, contrary to the EU system, the granting of the import licences in Turkey is not automatic. Therefore, this type of measures constitutes an additional administrative burden for EU exporters. The issue is being addressed bilaterally with the Turkish authorities in the framework of discussions on market access issues. This year 3 SFG measures lapsed (electrical appliances, matches and motorcycles). Two of these measures (electrical appliances and motorcycles) were extended twice and were in force almost for 10 years, the full maximum period allowed by the WTO rules. This is a practice of Turkey which was contested on several occasions at WTO level, especially because in most of the cases the evidence available did not justify the extension. The measures on matches were extended once before the measures lapsed. 5.2.3.Anti-circumvention In 2015 Turkey initiated an AC investigation on imports of plywood from Bulgaria. Furthermore, the AC investigation on woven fabrics of synthetic and artificial staple fibres from Bulgaria and Poland as well as the AC investigation on woven fabrics of synthetic filament yarn from Bulgaria were concluded with the extension of measures to these Member States. Two Bulgarian cooperating exporters were excluded from both measures. The measures imposed on woven fabrics of synthetic and artificial staple fibres, other imports from Bulgaria and imports from Poland are subject to 87% of duties.

5.2.4.Bilateral trade defence dialogue The Commission and Turkey have both expressed their willingness to set up a regular bilateral dialogue on trade defence issues within the context of the Customs Union. Several exchanges took place in 2015 to establish the practical framework of such a dialogue. The objective of the dialogue would be to discuss issues related to Turkey’s and EU’s trade defence practices, policies and legislation, to discuss other WTO Members’ activities and to exchange views on trade defence matters at technical/expert level. Both parties aim at having the first meeting in the first semester of 2016. 6.INDONESIA The trade defence activity of Indonesia slightly decreased in 2015 as compared to 2014. Two years ago, Indonesia initiated 3 new SFG investigations and also imposed SFG measures in 2 other cases. In 2015, it initiated 1 SFG investigation against imports of dextrose monohydrate and imposed 3 SFG measures against imports of: (i) bars and rods, hot-rolled, in irregularity wound coils, of iron or non-alloy steel or of other alloy steel, (ii) coated paper and paperboard, not including cast coated paper and banknote paper, and (iii) H and I sections of other alloy steel. It should be noted that EU exporters do not necessarily have a significant economic interest in all these cases. 7.ARGENTINA This year there were no new investigations in Argentina. There were just 2 investigations ongoing from 2014: an AD investigation on veterinary vaccines from France and the review of an AD measure on electric connection terminals from Germany. No new measures were imposed in 2015 and at the end of the year Argentina had 5 AD measures in force against the EU. 8.AUSTRALIA 8.1.Overall trends Australia continued its increased TDI activity against EU exports in 2015. It initiated 2 new AD investigations (processed tomatoes from Italy and chrome bars from Italy and Romania). The number of measures in force against EU exports increased from 3 to 5, due to the imposition of provisional duties in 2015 and definitive ones early in 2016 on processed tomatoes from Italy and definitive duties to steel reinforcing bar from Spain. There were also measures imposed to newsprint from France but the case was reviewed by the Australian Anti-Dumping Review Panel and the measures were revoked. A new anti-circumvention case was initiated against Sweden on measures imposed by Australia on quenched and tempered steel plate. 8.2.Main cases Early in 2015 and just 10 months after the imposition of AD measures on exports of processed tomatoes from Italy, the Australian authorities initiated a new AD investigation against the 2 Italian exporters with 0% dumping margin in the previous investigation. The EU economic interest is of about € 28 million This initiation appears not to be based on any new evidence and thus somewhat discriminatory and unduly burdensome for the EU exporters concerned. It also appears that a methodology not used in the previous investigation was introduced. The Commission has intervened both at technical and political level to rebut this methodology. Despite the above, provisional measures were imposed in September 2015 and definitive measures were imposed ranging from 4.5% to 8.4% on 10 February 2016. In essence, Australia artificially increased the AD duties by considering that the EU de-coupled agricultural aids to tomato growers are trade distorting. The Commission will continue to actively monitor this issue very carefully. 9.MEXICO 9.1.Overall trends Mexico initiated one new AD investigation against the EU in 2015. In total, this year there were 3 ongoing investigations (2 cases initiated in 2014). The measures in force at the end of the year all concern steel products, and increased from 2 to 5 as compared to 2014. This activity is likely related to the global steel crisis, caused by an overcapacity mostly in Asia. 9.2.Main cases The 3 main AD investigations concerned the following products: hot rolled steel coils from Germany and France, carbon steel tubes from Spain and stranded wire ropes from Spain and Portugal. These 3 cases concerned steel products and represented an economic interest for EU exports of around € 40 million. The Commission intervened within the framework of these 3 investigations since their initiation. Submissions were prepared at initiation, provisional stage and at the time of publication of the essential facts. The EU also participated in the public hearings for each investigation. However, definitive measures were imposed on hot rolled steel coils and provisional measures on carbon steel tubes and stranded wire ropes. Both the AD measure on carbon steel tubes from the United Kingdom and the measure on steel plate from Romania underwent an expiry review which resulted in the continuation of measures for the first one. The review of the measure on steel plate form Romania is still on-going.

In 2014 an AC case was initiated against graphite electrodes produced in the United Kingdom. The original AD measures covered exports from China. The investigation was concluded in September 2015 with the imposition of measures also to UK exporters. 10.MOROCCO 10.1.Overall trends Morocco continues to use TDI regularly and initiated 1 AD and 1 SFG investigation in 2015. It imposed 1 new AD and 1 new SFG measure and extended 1 other SFG measure. At the end of 2015, Morocco had 3 AD (Paper A4, hot rolled steel sheets, insulin) and 2 SFG measures (bars and rods, cold rolled steel sheets and plated or coated sheets) in force. 10.2.Main cases The SFG investigation regarding paper in rolls and in reams was initiated in June 2015 (economic interest for EU exports of around € 20 million). The main issue at stake relates to a doubtful causal link as an undercutting calculation is missing and other factors need to be analysed in more depth. The Commission made a submission at initiation and will continue to closely monitor the case. The AD investigation regarding exports of Polyvinyl chloride (PVC) was initiated in June 2015 (economic interest for EU exports of approximately € 30 million). The injury picture is not conclusive and other factors such as imports from Mexico need to be taken appropriately into account in the analysis. The Commission made a submission at initiation and will continue to closely monitor the case. With regard to the SFG case on cold rolled sheets and plated or coated sheets (economic interest for EU exports of approximately € 130 million) the Commission intervened strongly as from initiation with written submissions and participation in the public hearing. Following these interventions, in coordination with EU industry, the exports into the free zone of Tangier were excluded from the measure (around 60% of EU export volumes) and during consultations under the association agreement, the Commission obtained an increase of the quota for EU exports by approximately 20%. Despite the Commission’s concerns regarding the original SFG measures on imports of steel wire rods and reinforcing bars (economic interest for EU exports of around € 15 million) Morocco initiated an expiry review and decided to prolong the measures for 3 years. During the consultations under the association agreement the Commission was able to obtain a guaranteed quota for the EU based on historic import data.

11.CANADA 11.1.Overall trends Canada is a moderate user of TDI. It has 3 AD and 1 AS measures in force. It has not initiated any new investigations in 2015, but it has concluded an expiry review regarding refined sugar. 11.2.Main cases Canada has initiated the 4th expiry review regarding the AS measures on EU exports of refined sugar (measures in place since 1995). As in all previous reviews the Commission provided information showing that AS measures against imports from the EU are not warranted any longer. The Commission intervened at all stages of the investigation, filed a questionnaire response, made submissions and rejoinder submissions, and participated in the public hearing. The EU sugar regime will only be modified as from 2017, which was an important argument used for the continuation of the duties. The Commission, in coordination with the industry will closely monitor the situation, and, if requirements are met, request an interim review in due time. 12.THAILAND As in recent years, Thailand's trade defence activity affecting EU exports was also relatively low in 2015. Thailand extended the AD measures applicable to imports of flat hot-rolled steel in coils and not in coils originating in Slovakia and Romania following an expiry review. Thailand also initiated a review on the extension of the SFG measure on imports of hot rolled steel flat products with certain amounts of alloying elements. 13.EGYPT 13.1.Overall trends

In 2015 Egypt initiated 2 new SFG investigations and imposed 1 new SFG measure. At the end of 2015, Egypt had 2 SFG measures (steel rebar and white sugar) and 1 AD measure (PET containers) in force. 13.2. Main cases The SFG investigation regarding white sugar entails an economic interest for EU exports of around € 35 million. It was initiated in April 2015 with provisional measures imposed at the same time. Following strong interventions by the Commission in coordination with the industry concerned, the Egyptian authorities concluded in their report of October 2015 that indeed the domestic industry was not suffering serious injury, which led to the formal decision of February 2016 to terminate the case without measures. At the end of 2015, Egypt initiated a safeguard investigation concerning Polyethylene terephthalate (economic interest for the EU producers of around € 1.5 million). This case was also initiated on weak grounds and the Commission highlighted this in its submissions. In particular, the difficulties experienced by the domestic industry seem to be related to the start-up phase and the significant overcapacity of the local plant, which covers nearly twice the domestic demand. The Commission will continue to closely monitor the case. A safeguard investigation regarding automotive batteries was initiated in December 2014 (economic interest for EU exports of around € 40 million). The main issue was a clear lack of a causal link showing that any serious injury to the domestic industry was due to the increase in imports. Following the Commission’s interventions (written submission, public hearing and consultations under the Euromed agreement) the investigation was terminated in December 2015. This is to be regarded as a concrete achievement. 14.EURASIAN ECONOMIC UNION (Belarus, Kazakhstan, Russia, Armenia and Kyrgyz Republic) 14.1.Overall trends The activity in 2015 was as modest as in 2014. There are 3 measures in force (1 AD and 2 SFG) and no new investigation was initiated nor measure imposed. The number of measures in force has therefore been stable, with 3 measures in 2014 and 3 in 2015. Armenia joined the Customs Union as from 2 January 2015 and notified the WTO that the Eurasian measures would also apply to Armenia as from that date. As a consequence of the accession to the Eurasian Economic Union (‘EAEU’) Armenia and the Kyrgyz Republic terminated their own trade defence measures to apply the ones adopted by the EAEU. 14.2.main cases The Commission has decided to request a WTO panel against Russia concerning the AD measures imposed on imports of light commercial vehicles. The official request was made in September 2014 and mainly concerns the lack of an objective injury analysis and procedural flaws. The substantive part of the Panel proceeding started in 2015. The Panel is expected to deliver its conclusions in the second half 2016. As regards the SFG measures on combine harvesters and modules the Commission has strong doubts regarding the WTO compatibility of these measures and the quota introduced is particularly restrictive. The measure is due to expire on 21 August 2016. 15.THE REPUBLIC OF THE PHILIPPINES 15.1.Overall trends Last year, the trade defence activity by the Philippines was very modest. Its authorities terminated without imposition of measures one SFG investigation against imports of galvanised iron and pre-painted galvanised iron sheets and coils and imposed 1 new SFG measure against imports of newsprint. 15.2.Main cases The Commission was particularly active in supporting the interests of EU exporters of newsprint. Between 2013 and 2015, the Commission services intervened several times in this investigation, both orally and in writing, in order to address certain flaws identified in the petition as well as in the preliminary and final determinations. Those efforts proved effective since, although the investigation was not terminated, the level of measures imposed in 2015 was significantly reduced. 16.SOUTH AFRICA

16.1.overall trends South Africa was less active in 2015 compared to the previous 2 years. No new investigations were initiated but AD measures were imposed on frozen chicken. Furthermore, on the same product, South Africa initiated a bilateral SFG investigation against the EU during February 2016, based on the bilateral agricultural safeguard clause of the Agreement on Trade, Development and Cooperation between the European Community and its Member States and the Republic of South Africa (TDCA). At the time of writing this report the Commission was already preparing its intervention in coordination with industry. The economic interest in terms of annual EU exports to South Africa is around €190 million. 16.2.main cases Following the imposition of provisional AD duties in July 2014 concerning frozen bone in portions of fowls (‘frozen chicken’) imported from Germany, the Netherlands and the United Kingdom, the imposition of definitive duties was proposed in an essential facts letter The Commission made a technical submission commenting on the disclosed findings, following which the residual duty rate for the United Kingdom as well as the individual duty for one United Kingdom exporter was reduced. The definitive duties imposed in February 2015 are thus lower and range from 0 to 73.33%. 17.UKRAINE 17.1.overall trends Trade defence activity in Ukraine has continued being very modest in 2015. At the end of 2015 there were 3 measures in force, 1 AD measure on float glass and 2 SFG measures on steel seamless casing and lifting pipes, and porcelain tableware and kitchenware. 17.2.Main cases The SFG investigation on flexible porous plates, blocks and sheets of polyurethane foam started in July 2015 and should normally be concluded in spring 2016. As regards to the SFG measures on cars, Japan requested WTO consultations with Ukraine (case number DS 468) and the EU joined Japan as a third party in these consultations. The Dispute Settlement Body adopted the Panel report on 20 July 2015 and found that Ukraine acted in contravention of several substantive and procedural WTO rules. On 10 September 2015 Ukraine decided to cease the measure, originally due to expire on 14 April 2016, as from 30 September 2015. 18.NEW ZEALAND New Zealand has not initiated any new investigations in the last 3 years. There is 1 AD measure against preserved peaches from Spain (since 2011) and 1 AD against canned peaches from Greece (since 1997), currently in force. The duties against Greece were reviewed in July 2015 and maintained for 5 more years. 19.CHILE 19.1. Overall trends Whilst in the past years there was hardly any trade defence activity in Chile, in 2015 4 SFG investigations were initiated against steel products and imposed provisional measures on steel wire rod. At the end of 2015, the latter was the only measure in force affecting the EU. It is likely that the global steel situation has led the Chilean authorities to take these SFG actions. 19.2.Main cases The SFG investigations initiated concerned steel wire, steel nails, steel mesh and steel wire rod (products having different tariff codes).

Although the economic interest for the EU is not so relevant, the EU opposed to this series of initiations and raised its concerns to the Chilean authorities. Indeed, imposing SFG measures can potentially penalize fairly traded imports since they are applied equally to all countries of origin. China seems to be by far the major exporter to Chile. More targeted trade remedies would have been more appropriate. Additionally, the cases seem to show some weaknesses regarding the existence of causality and a sharp and recent increase of imports. 20.MALAYSIA In 2015 Malaysia initiated 3 investigations, i.e. 2 AD investigations against imports of cold rolled stainless steel and cold rolled steel coils and 1 SFG investigation against imports of hot-rolled coils. These investigations were terminated without the adoption of the measures. In another SFG investigation against imports of hot-rolled steel plate, which was initiated in 2014, measures were imposed in 2015. 21.The republic of Korea South Korea does not use AD proceedings frequently. In December 2015 it initiated 1 AD investigation against butyl glycol ether of European origin (France). The investigation is still ongoing. The Commission monitors it and will intervene as appropriate. 22.ZAMBIA Zambia initiated its first SFG investigation case ever on 10 July 2015 on flat-rolled products of iron, non-alloy steel, trailers and semi-trailers. On the same day provisional measures were imposed. The notification to the WTO was belated and lacked many essential elements. Zambia was reminded to comply with the WTO requirements during the investigation. Zambia did not take any further action and the provisional measures lapsed in January 2016. 23.JORDAN 23.1.Overall trends Jordan has used TDI occasionally in the past and it has currently no measures in force. 23.2.Main cases The safeguard investigation initiated in August 2014 regarding imports of Paper A4 (economic interest for the EU producers of around € 4 million) was terminated in November 2015, following strong interventions by the Commission (written submission, participation in the public hearing and consultations under the association agreement) in coordination with the industry. 24.TUNISIA 24.1.Overall trends Tunisia – historically not a frequent user of TDI – initiated 1 new SFG investigation (ceramic tiles) in 2015. Also, the 2 SFG investigations initiated in 2014 (medium-density fibreboard ‘MDF’ and glass bottles) are still ongoing. 24.2.Main cases The ceramic tiles case involves an economic interest for EU exports of around € 30 million and was initiated in July 2015. At this stage the main requirements in a SFG investigation seem not to be fulfilled: there appears to be no recent increase of imports, an incomplete injury analysis and a clear lack of a causal link between those two elements. Indeed, other factors such as an increase of cost of energy and labour, an increase of capacity and the producers’ own imports seem to be the cause of any injury. The EU industry is very concerned with this case and the Commission, following a first submission, will continue to closely monitor this investigation.