Report from the Commission to the European Parliament - 27th annual Report on the community's anti-dumping, anti-subsidy and safeguard activities (2008) [SEC(2009)1413]
Date: 2009-10-26
Institutions: European Commission
Subjects: activity report, anti-dumping legislation, anti-subsidy proceeding, protective clause

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 26.10.2009 
COM(2009) 573 final 

REPORT FROM THE COMMISSION TO  

THE EUROPEAN PARLIAMENT 

27th annual report on the community's anti-dumping, anti-subsidy and safeguard 
activities  

(2008) 

[SEC(2009)1413] 

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REPORT FROM THE COMMISSION TO  

THE EUROPEAN PARLIAMENT 

27th annual report on the community's anti-dumping, anti-subsidy and safeguard 
activities  

(2008) 

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INTRODUCTION 

This  2008  report  is  submitted  to  the  European  Parliament  following  its  resolution  of  16 
December 1981 on the Community’s anti-dumping activities, and the report of its Committee 
on industry, external trade, research and energy.  

This short report provides an overview of the highlights during 2008 and is supplemented, as 
in  previous  years,  by  a  more  detailed  Commission  Staff  Working  Document,  together  with 
detailed  annexes.  This  report  follows  the  same  general  structure  of  the  Working  Document, 
including all its headings, for easy reference to more comprehensive information. 

The present report and the full Working Document are also available to the public at 
http://ec.europa.eu/trade/issues/respectrules/anti_dumping/legis/index_en.htm 

1. 

OVERVIEW OF THE LEGISLATION 

Anti-dumping  (AD),  anti-subsidy  (AS)  and  safeguard  (SFG)  investigations  are 
conducted  on  the  basis  of  basic  Council  Regulations.  An  overview  of  the  existing 
legislation  is  given  in  the  Working  Document.  The  basic  AD  and  AS  texts  will 
hereafter be referred to as the "basic Regulation(s)".  

2. 

BASIC CONCEPTS 

Heading  2  in  the  working  document  gives  an  overview  of  the  terminology  and 
procedures used in TDI investigations. 

3. 

TDI REVIEW– REFLECTION TIME COMMENCED 

At  the  beginning  of  2008  the  Trade  Commissioner  concluded  that  more  reflection 
time  is  needed  to  allow  convergence  of  views  on  the  way  forward  concerning  the 
Trade  Defence  Instruments  review  ("Green  Paper  process").  An  important  pre-
condition of improving the functioning of the Trade Defence system is to reinforce 
consensus  among  all  stakeholders  concerned  over  the  application  of  these 
instruments.  Such  a  consensus  does  not  yet  exist  –  not  among  industry,  not  in  the 
European Council and not in the European Parliament.  

4. 

COUNTRY-WIDE MARKET ECONOMY STATUS (MES) 

For  the  purposes  of  anti-dumping  investigations  a  country  can  be  considered  a  full 
market economy if it fulfils five criteria which are set  out  in detail  in  the Working 
document attached to this report.  

During  2008  the  Commission  services  continued  to  evaluate  requests  for  country-
wide  MES  from  China,  Vietnam,  Armenia,  Kazakhstan  and  Mongolia.All  five 
countries  continued  to  provide  additional  information  in  support  of  their  claims 
throughout the year.  

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The countries concerned are at various stages in their progress as are the evaluations 
for MES. 

In  addition  to  a  number  of  bilateral  meetings  with  the  countries  concerned,  April 
2008  saw  the  eighth  meeting  of  the  dedicated  China  MES  Working  Group.  A 
comprehensive  preliminary  assessment  report  followed  in  which  progress  was 
acknowledged  but  certain  shortcomings  were  underlined  as  well.  The  report  was 
discussed with Member States in September 2008 and got unanimous support. Close 
cooperation with China will continue in 2009. 

Conceptual  and  drafting  work  for  the  next  Vietnam  preliminary  assessment  report 
was  launched  at  the  end  of  2008.  The  report  is  to  be  expected  for  discussion  with 
Member States at the end of first half 2009. In October 2008 the Kazakhstan – EU 
Cooperation  Council  took  place  at  which  the  issue  of  MES  was  discussed.  The 
Commission  was  ready  to  conduct  a  further  verification  mission  to  Mongolia  in 
autumn  2008.  However,  as  a  consequence  of  a  decision  of  the  Mongolian 
Government  this  mission  had  been  postponed.  The  work  on  the  Armenia  file  was 
characterized  by  in-depth  analysis  of  the  information  received  from  the  Armenian 
government and other sources. 

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HEARING OFFICER 

2008  was  the  first  full  year  of  activity  for  the  Hearing  Officer  for  DG  Trade,  who 
became operational in April 2007. The Hearing Officer is administratively attached 
to  the  Director  General  of  DG  Trade  but  acts  independently.  He  reports  to  the 
Director General.  

The  main  task  of  the  Hearing  Officer  is  to  guarantee  the  full  exercise  of  rights  of 
defence in trade proceedings before the European Commission. The Hearing Officer 
also advises the Director General of DG Trade on issues related to due process and 
good  administration  and  on  any  issues  arising  out  of  trade  proceedings,  where 
appropriate.  

In  2008  the  Hearing  Officer  received  19  requests  for  hearings  in  11  anti-dumping 
proceedings (including one undertaking) and held 16 hearings. The Hearing Officer 
also  held  two  adversarial  meetings  during  which  interested  parties,  including  the 
Community industry, the exporting producers and the importers could present their 
arguments. 

While the most frequent reason for interested parties to refer to the Hearing Officer 
appears  to  be  a  need  for  more  detailed  explanations  where  claims/arguments  are 
rejected  other  issues  addressed  included  the  quality  of  the  non-confidential  files, 
product  scope,  non-cooperation,  MET/IT  conclusions  and  arguments  concerning 
injury and Community interest.  

Further details regarding the hearings and meeting including the main issues covered 
can be found in the Working Document to the Annual Report. 

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6. 

INFORMATION AND COMMUNICATION ACTIVITIES / BILATERAL CONTACTS 

The Trade Defence Helpdesk for SMEs was set up in view of the complexity of TDI 
proceedings,  especially  for  SME's,  because  of 
their 
fragmentation. Its role is to address specific SME questions and problems regarding 
TDIs,  both  of  a  general  nature  or  case-specific.  A  part  of  the  TDI  website  is 
dedicated to SMEs, and refers to the Trade Defence Helpdesk contact points. 

their  small  size  and 

In 2008 these contact points received many requests for information, which were all 
immediately addressed. These requests concerned both the procedures and content of 
TDI proceedings. 

There were a number of seminars organised for third countries on TDI Issues – the 
countries included  Indonesia,  Serbia,  Jordan,  Ukraine,  GCC,  Albania and Lebanon. 
In addition a round table discussion was held with India on subsidy issues.  

7. 

OVERVIEW OF AD, AS AND SFG INVESTIGATIONS AND MEASURES 

7.1. 

General 

At the end of 2008, the Community had 128 AD measures (see Annex O) and 8 AS 
measures (see Annex P) in force. 

In  2008,  0.6%  of  total  imports  into  the  Community  were  affected  by  AD  or  AS 
measures. 

Please note that details on the issues hereafter are given  in the Working Document 
attached to this report. The references to the Annexes of the Working Document can 
be found beside the titles.  

7.2. 

New investigations (see Annexes A through E and Annex N) 

In  2008,  20  investigations  were  initiated1.  Provisional  duties  were  imposed  in  5 
proceedings.  16  cases  were  concluded  with  the  imposition  of  definitive  duties.  3 
proceedings  were  concluded  without  measures.  Another  2  anti-dumping  measures 
were allowed to expire automatically following their 5-year duration. 

7.3. 

Review investigations 

Review  investigations  continue  to  represent  a  major  part  of  the  work  of  the  TDI 
services.  In  the  period  2004-2008  they  accounted  for  62%  of  all  investigations 
initiated.  Table  2  in  the  Working  Document  provides  statistical  information  for  the 
years 2004-2008. 

1 

Table  1  in  the  Working  Document  provides  statistical  information  on  the  new  investigations  for  the 
years 2003 – 2007 carried out under the provisions of Articles 5 and 10 of the basic Regulations. 

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7.3.1.  Expiry reviews (see Annex F) 

Articles  11(2)  and  18  of  the  basic  Regulations  provide  for  the  expiry  of  measures 
after five years, unless an expiry review demonstrates that they should be maintained 
in their original form.  

During  2008,  7  expiry  review  investigations  were  initiated.  9  expiry  reviews  were 
concluded  with  a  confirmation  of  the  duty  for  a  further  period  of  5  years.  5  expiry 
reviews were concluded by the termination of measures.  

7.3.2. 

Interim reviews (see Annex G) 

Articles  11(3)  and  19  of  the  basic  Regulations  provide  for  the  review  of  measures 
during their period of validity. Reviews can be limited to dumping/subsidization or 
injury aspects. 

During  2008,  a  total  of  13  interim  reviews  were  initiated.  20  interim  reviews  were 
concluded with confirmation or amendment of duty. 6 investigations were concluded 
with the termination of measures.  

7.3.3.  “Other” interim reviews (see Annex H) 

A  series  of  other  reviews,  not  falling  under  Articles  11(3)  or  19  of  the  basic 
Regulations or for which no notice of initiation was published in the Official Journal, 
were concluded during 2008.  

13  such  reviews  were  concluded  in  2008  with  confirmation  or  amendment  of  the 
measures  and  1  was  concluded  by  terminating  the  measures.  They  specifically 
concern, inter alia, the effective monitoring of undertakings, actions following WTO 
DSU proceedings, suspension of measures, etc.  

7.3.4.  New exporter reviews (see Annex I) 

Articles 11(4) and 20 of the basic Regulations respectively provide for a “newcomer” 
and  “accelerated”  review  in  order  to  establish  an  individual  dumping  margin  or  an 
individual countervailing duty for new exporters located in the exporting country in 
question  which  did  not  export  the  product  during  the  investigation  period.  Such 
exporters  have  to  show  that  they  are  genuine  new  exporters  and  that  they  have 
actually started to export to the Community after the investigation period. As such, 
an  individual  duty,  which  is  usually  lower  than  the  country-wide  duty,  can  be 
calculated for them.  

In 2008, 1 new exporter review was initiated.  

7.3.5.  Absorption investigations (see Annex J) 

Where  there  is  sufficient  information  showing  that,  after  the  original  investigation 
period  and  prior  to  or  following  the  imposition  of  measures,  export  prices  have 
decreased or that there has been no or insufficient movement in the resale prices or 
subsequent selling prices of the imported product in the Community, an "absorption" 
review may be opened to examine whether the measure has had effects on the above-
mentioned  prices.  Dumping  margins  may  as  such  be  recalculated  and  the  duty 

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increased to take account of such lower export prices. The possibility of "absorption" 
reviews is included in Articles 12 and 19(3) of basic Regulations. 

In 2008, there were no anti-absorption reviews initiated or concluded.  

7.3.6.  Circumvention investigations (see Annex K) 

The possibility of investigations being re-opened in circumstances where evidence is 
brought to show that measures are being circumvented is foreseen in Articles 13 and 
23 of the basic Regulations. 

In  2008,  1  such  investigation  was  initiated.  1  anti-circumvention  investigation  was 
concluded with extension of the duty and 1was concluded without the extension of 
the duty.  

7.4. 

Safeguard investigations (see Annex L) 

During 2008, there was no safeguard activity in the EC.  

8. 

ENFORCEMENT OF AD/AS MEASURES 

8.1. 

Follow-up of measures 

The  follow-up  activities  concerning  measures  in  force  were  centred  on  four  main 
areas: (1) to pre-empt fraud; (2) to monitor trade flows and market developments; (3) 
to  improve  the  effectiveness  with  the  appropriate  instruments  and  (4)  to  react  to 
irregular  practices.  These  activities  enabled  the  TDI  services  to  be  more  pro-active 
rather than simply reactive in the enforcement field. 

8.2.  Monitoring of undertakings (see Annexes M and Q) 

Monitoring  of  undertakings  forms  part  of  the  enforcement  activities,  given  that 
undertakings  are  a  form  of  AD  or  AS  measures.  They  are  accepted  by  the 
Commission if it is satisfied that they can effectively eliminate the injurious effects 
of dumping or subsidisation. 

At  the  beginning  of  2008,  there  were  38  undertakings  in  force.  During  2008,  the 
following  changes  to  the  portfolio  of  undertakings  took  place:  undertakings  of  3 
companies came to an end and 11 offers for undertakings have been accepted. This 
brings the total number of undertakings in force at the end of 2008 to 46. 

9. 

REFUNDS (SEE ANNEX U) 

Articles  11(8)  and  21(1)  of  the  basic  Regulations  allow  importers  to  request  the 
reimbursement  of  the  relevant  collected  duties  where  it  is  shown  that  the 
dumping/subsidy margin, on the basis of which duties were paid, has been eliminated 
or reduced to a level below that of the duty in force. 

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During 2008, 25 new refund requests were lodged (covering 55 submissions). 9 cases 
were closed, no full or partial refunds were granted, 3 refund requests were rejected 
and 6 requests were withdrawn. 

10. 

JUDICIAL REVIEW: DECISIONS GIVEN BY THE COURT OF JUSTICE (COJ) / COURT OF 
FIRST INSTANCE (CFI)  

In 2008, the Court of Justice (COJ) and the Court of First Instance (CFI) rendered 8 
judgments  in  total  relating  to  the  areas  of  anti-dumping  or  anti-subsidy.  They  also 
issued 10 orders between them in the course of the year on AD and AS matters. A 
summary of some of the judgments is given in the Working Document. 

There were 16 new cases lodged in 2008, 10 before the CFI and 6 before the COJ.  

A  list  of  the  AD/AS  cases  before  the  CFI  and  the  COJ  still  pending  at  the  end  of 
2008 is given in Annex S of the Working Document. 

11. 

ACTIVITIES IN THE FRAMEWORK OF THE WORLD TRADE ORGANIZATION (WTO) 

11.1.  Dispute settlement in the field of AD, AS and SFGs  

The WTO provides for a rigorous procedure for the settlement of disputes between 
WTO Members concerning the application of the WTO agreements 

January 2008 saw the adoption of the Report by the WTO which had been issued by 
a WTO Panel during 2007 in a case taken by Norway challenging EU AD measures 
on Salmon. Measures to implement the findings of the report were undertaken by the 
EU during 2008.  

In December 2008 India lodged a request in the WTO for consultations with the EU 
regarding the AD and AS measures in place on Polyethylene terephthalate (PET). 

Further  details  on  these  cases  are  given  in  the  Working  Document  attached  to  this 
report.  

11.2.  Other WTO activities  

In  2008,  the  DDA  Negotiating  Group  on  rules  met  in  the  first  half  of  the  year  to 
discuss  the  first  Chair's  draft  text  which  was  circulated  in  November  2007.  A  vast 
majority of the WTO membership, including the EU, stressed the unbalanced nature 
of the text overall. This was particularly the case of the anti-dumping and fisheries 
subsidies draft texts. Many called for the Chair to issue a new, more balanced, text at 
the earliest possible time. The year culminated in the Ministerial Conference that was 
held late July; however, rules were not specifically addressed then. 

In parallel to these activities, participation by the Commission services in the regular 
work  of 
the  Anti-dumping,  Subsidies  and  Countervailing  and  Safeguards 
Committees  continued.  The  Committees  met  twice  in  regular  sessions  to  review 
notifications  and  raise  issues  of  special  interest.  On  Anti-dumping  a  new  common 
format  for  the  semi-annual  reporting  of  Anti-dumping  actions  was  agreed  in  the 

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committee. On Subsidies the EC's 2007 New and Full Subsidy notification was being 
dealt  with  in  the  committee  and  numerous  replies  were  provided  to  Members' 
questions. 

12. 

CONCLUSION 

2008 saw a significant increase in the number of new cases initiated in comparison to 
the  previous  year  as  well  as  an  increase  in  definitive  measures  imposed.  However, 
there was a considerable drop in the number of investigations terminated without the 
imposition of measures and the number of provisional measures imposed. Regarding 
reviews, the level of activity overall dropped with initiations and reviews concluded 
or terminated down from 2007 levels.  

With regard to the 'Green Paper' process there was an overall acceptance in 2008 that 
more reflection time is needed to strengthen consensus on the operation of the Trade 
Defence Instruments.  

The  TDI  services  continued  to  carry  out  investigations  at  the  highest  standards  in 
2008.  In  this  context  the  services  continued  to  ensure  that  the  rights  of  all  parties 
were  taken  into  account  in  the  process.  It  was  the  first  full  year  of  activity  for  the 
Hearing Officer. Finally through seminars for many various stakeholders as well as 
third  country  authorities  the  TDI  services  ensured  a  greater  awareness  and 
understanding of the many issues involved.  

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