REPORT FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT 32nd Annual Report from the Commission to the Council and the European Parliament on the EU's Anti-Dumping, Anti-Subsidy and Safeguard activities (2013)
Date: 2015-02-04
Institutions: European Commission
Subjects: Armenia, Belarus, China, Kazakhstan, Mongolia, Viet Nam, World Trade Organisation, access to information, anti-dumping measure, bilateral relations, small and medium-sized enterprises













EUR-Lex - 52015DC0043 - EN











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52015DC0043

REPORT FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT 32nd Annual Report from the Commission to the Council and the European Parliament on the EU's Anti-Dumping, Anti-Subsidy and Safeguard activities (2013) /* COM/2015/043 final */









REPORT FROM
THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT
32nd Annual Report from the Commission to
the Council and the European Parliament 
on the EU's Anti-Dumping, Anti-Subsidy and Safeguard activities (2013)
Introduction
This report sets out the European Union's
anti-dumping, anti-subsidy and safeguard activities during 2013. 
This short report provides an overview of the
highlights during 2013 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
Modernisation 
Important progress was made on the ongoing
modernisation project in 2013 with the adoption of a legislative proposal, a
communication and draft guidelines on four subjects by the Commission in April
2013.
The exercise to modernise the trade defence
instruments (TDI's) was launched in October 2011. Given that the global trading
environment has changed significantly over the last decade and the fact that
the EUs trade defence system has remained largely unchanged since the conclusion
of the Uruguay Round almost 20 years ago, a need to adapt the TDIs to the
current needs of business was identified.
The aim of the ongoing modernisation project is
to improve the EU's current trade defence system for the benefit of all
stakeholders. The focus lies on finding practical solutions to real problems
which Union producers, importers, traders, etc. encounter through the use of
the instruments.  The aim is to render the system more efficient and measures
more effective without, however, changing the underlying principles and balance
of the system.
Following its adoption by the Commission in
April 2013, the legislative proposal was transmitted to Council and Parliament and
is following the ordinary legislative procedure.
 4.        Country-wide
market economy status (MES)
For the purposes of anti-dumping
investigations, a country can be considered a market economy if it fulfils five
criteria which are set out in detail in the Working Document attached to this
report. 
Six
countries have requested country-wide MES: China, Vietnam, Armenia, Kazakhstan,  Mongolia and Belarus. In 2013, Mongolia and Vietnam provided further
information in support of their requests, which allowed the services to
continue updating the assessment of those economies.
An updated assessment report was shared with the
Vietnamese authorities in 2013.  The report based on the results of a November
2012 working group meeting and information subsequently received was finalised
in May 2013. The report confirmed an earlier assessment that criterion one was
met while progress on the remaining four criteria, although substantial, was
still insufficient for the granting of MES. Additional updated information was
provided by the Vietnamese authorities early in 2014.  
Consultations
with Mongolian authorities continued in 2013 allowing the Commission services
to prepare an updated assessment (granting one criterion), which was shared
with the Mongolian authorities early in 2014.  
As
regards China, no consultations on MES took place in 2013. The Commission
remains willing to discuss further progress made by China towards MES, and
hopes that the Chinese authorities will continue to engage in the exercise and
deliver the necessary information for the MES analysis by the Commission. 

In
2010 questions on developments of both Kazakhstan's and Armenia’s progress towards MES were sent to the respective authorities.
However, by the end of 2013 still no new information
had been sent to the Commission by either country.  During the first half of
2014 both countries submitted information to facilitate updating their MES
assessments. As regards Belarus any work on this file
has been on hold since 2010 due to the political situation in the country. 
5.           Information
and Communication activities/ Bilateral contacts 
5.1.        Small
and medium sized enterprises (SMEs)
Participating in Trade Defence investigations
can pose certain challenges for SME's owing to their small size, resource
limitations and their fragmentation. In order to help SMEs deal with the
complexity involved in TDI investigations a Helpdesk for SMEs was set up. In
2013, the Helpdesk received many requests for information, which were all
immediately addressed. These questions ranged from case-specific queries to
more general trade defence issues addressing both the procedural and substance
elements of proceedings. The TDI website also specifically highlights SME's
role in TDI proceedings and offers practical advice and help. 
5.2.        Bilateral contacts/information
activities – industry and third countries
Explaining the legislation and practice of the EU's trade defence
activity is an important part of the work of the TDI services.  
There were a number of bilateral contacts
dedicated to discussing various trade defence related topics with a number of
third countries during 2013.  These included China, Korea, Morocco, Mexico, Philippines, Thailand and Vietnam Malaysia. 
.
There were several meetings with European key
stakeholder associations and companies in 2013, including Business Europe and
Eurocommerce.  The ongoing modernisation project featured significantly during
these meetings. 
6.           Hearing
Officer
The primary role of the hearing officer (HO) is
to guarantee the rights of defence of interested parties and thereby contribute
to ensure that the rules are implemented in an objective and transparent manner
in trade proceedings.  
Certain ground rules of the rights of defence
are laid down in the EU Charter of Fundamental Rights while more specific rules
of parties involved in trade proceedings are contained in the basic regulations
dealing with the different types of trade defence instruments, such as the AD,
CVD, safeguards regulations, or in the trade barriers regulation.
Since February 2012, the role and the powers of
the HO for DG Trade are set out in a formal mandate by a Decision of the
President of the European Commission on the function and terms of reference of
the hearing officer in certain trade proceedings. This underpins the
Commission’s commitment to guaranteeing due process in trade proceedings and to
improving the impartiality of the function. The HO is attached, for
administrative purposes, to the Commissioner responsible for trade policy.
However, he enjoys independence in performing his duties and shall not take
instructions in fulfilling his tasks.
During the year 2013 the HO received 159
requests for intervention which concerned 30 TDI proceedings.  In all, 42 hearings
with 188 interested parties were held, out of which seven were multiparty
hearings involving 151 interested parties with similar interests and one
confrontational hearing involving three interested parties with conflicting
interests.
 
The interventions were requested by exporting
producers in third countries, by the Union industry, as well as by users and
importers, or their associations. While the interventions focused on procedural
rights, they had, in some cases, also an impact on the substantial outcome of
the proceeding or contributed to Policy changes.
The main issues brought before the HO in 2013
can be grouped in three categories (i) right to be informed, (ii) right to
access the files and (iii) disagreement with determinations, findings and
conclusions.  
7.           Overview
of anti-dumping, anti-subsidy and safeguard investigations and measures
7.1.        General
At the end of 2013, the EU had 86 AD
measures and 12 AS measures in force.
In 2013, 0.29% of total imports into the EU 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 2013, 9 new investigations were initiated.
Provisional duties were imposed in 6 proceedings. 15 cases were concluded with
the imposition of definitive duties. 11 investigations were concluded without
measures. 
7.3.        Review investigations
Review investigations continue to represent a
major part of the work of the TDI services. Table 2 in the Working Document
provides statistical information for the years 2009-2013.
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 2013,
6 measures expired automatically following their 5-year duration.
During 2013, 17 expiry review investigations
were initiated. 5 expiry reviews were concluded with a confirmation of the duty
for a further period of 5 years. 8 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 2013, a total of 10 interim reviews were
initiated. 3 interim reviews were concluded with confirmation or amendment of
duty. 3 interim reviews were concluded with the termination of the measures. 
7.3.3.     “Other”
interim reviews (see Annex H)
There were 4 'other' reviews, i.e. not falling
under Articles 11(3) or 19 of the basic Regulations, initiated during 2013
while 3 such reviews were concluded in the period.
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 EU after the investigation period. As such, an individual duty, which is
usually lower than the country-wide duty, can be calculated for them. 
In 2013, 2 new exporter reviews were initiated
while 1 such review was concluded. 
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 EU, 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 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 2013, 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 provided for in Articles 13 and 23 of the basic
Regulations.
In 2013, 3 such investigations were initiated. 12
anti-circumvention investigations were concluded with extension of the measures
and 3 were concluded without extension of the measures. 
7.4.        Safeguard investigations
(see Annex L)
During 2013 there was no safeguard activity.  
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 pro-actively
in cooperation with Member States ensure the proper enforcement of trade
defence measures in the European Union. 
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 2013, there were 15
undertakings in force. During 2013, the following changes to the portfolio of
undertakings took place: The undertakings of two companies were withdrawn as it
was established that breaches had occurred. In the 'Solar Panels case',
undertakings from 121 companies/company groups were accepted. This brought the
total number of undertakings in force at the end of 2013 to 134.
9.           Refunds 
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 has been eliminated or reduced to a level below
that of the duty in force.
During 2013, 28 new refund requests were
submitted. At the end of 2013, 13 investigations were on-going, covering 36
requests. In 2013, 25 Commission Decisions were adopted: 5 granting a full
refund, 18 granting a partial refund and 2 rejecting the refund requests. 1
request was withdrawn.
10.         Judicial
review: decisions given by the Court of Justice (CoJ) / General Court (GC) (see Annex S)
In 2013, the
General Court and the Court of Justice rendered 28 judgments relating to the
areas of anti-dumping or anti-subsidy.   4 of the judgments of the Court of
Justice concerned appeals against judgments of the General Court.  
There were 33 new cases lodged in 2013, 23
before the GC and 10 before the COJ. 
A list of the AD/AS cases before the GC and the COJ still pending at
the end of 2013 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.
During 2013 a WTO panel was established
following a request by Indonesia to the WTO with respect to anti-dumping
measures imposed by the European Union on the imports of fatty alcohols and
with respect to certain aspects of the investigation underlying these measures.
Also in 2013, China requested consultations with the European Union regarding
compliance procedures following the WTO dispute relating to EU definitive
Anti-Dumping Measures on Certain Iron or Steel Fasteners from China. In December 2013, Argentina requested consultations with the European Union
regarding anti-dumping measures imposed on biodiesel and also in December 2013,
 Russia requested consultations with the European Union regarding “cost
adjustment” methodologies used by the EU for the calculation of dumping margins
in several anti-dumping investigations and reviews concerning, among others,
imports from Russia. 
11.2.      Other WTO activities 
While there was no activity during 2013 for the Negotiating Group on
Rules, the Technical Group, a subgroup of the negotiating group, was convened
twice during the year. The group discussed a number of issues relating to the
practical aspects of conducting anti-dumping investigations 
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, including the EU's 2013 New
and Full Subsidy Notification.  In addition the informal technical group on
Anti-dumping met a number of times during 2013. 
12.         Conclusion
The number of investigations dealt with and
concluded during 2013 was in line with the average of previous years activities,
with some indicators above average. The year was characterised by a shift to
more activity in review investigations rather than new investigations, when
compared to the previous year.  Given that the process is complaint driven,
this reflected the type (reviews or new cases), and number, of properly
substantiated complaints received during the year.   As with prevous years, 
the activities centered on anti-dumping and anti-subsidy with no safeguard
actions.   
The Modernisation of the Trade Defence
instruments exercise had been launched in the autumn of 2011.  The modernisation
package adopted by the Commission in April 2013 included a Commission
Communication, a legislative proposal and draft guidelines on certain aspects
of investigations.  The ordinary legislative procedure is under way in the
European Parliament and the Council. 
The TDI services also continued their
information role through organising seminars aimed at third country officials
and held a number of bilateral contacts with industry.