REPORT FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT 33rd Annual Report from the Commission to the Council and the European Parliament on the EU's Anti-Dumping, Anti-Subsidy and Safeguard activities (2014)
Date: 2015-08-03
Institutions: Directorate-General for Trade and Economic Security, European Commission
Subjects: anti-dumping duty, anti-dumping measure, anti-subsidy proceeding, countervailing charge, import (EU), import restriction, originating product, surveillance concerning imports, trade dispute

EUROPEAN 
COMMISSION 

Brussels, 3.8.2015  
COM(2015) 385 final 

REPORT FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN 
PARLIAMENT 

33rd Annual Report from the Commission to the Council and the European Parliament 
on the EU's Anti-Dumping, Anti-Subsidy and Safeguard activities (2014) 

{SWD(2015) 149 final} 

EN 

   EN 

 
 
 
 
  
 
REPORT FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN 
PARLIAMENT 

33rd Annual Report from the Commission to the Council and the European Parliament  
on the EU's Anti-Dumping, Anti-Subsidy and Safeguard activities (2014) 

 
 
INTRODUCTION 

This  is  a  report  of  the  European  Union's  anti-dumping,  anti-subsidy  and  safeguard 
activities during 2014. It is presented to the European Parliament and the Council in 
line with the provisions of Article 22a of Council Regulation (EC) No 1225/2009 on 
protection  against  dumped  imports  from  countries  not  members  of  the  European 
Community  (‘basic  anti-dumping  Regulation’),  Article  33a  of  Council  Regulation 
(EC)  No  597/2009  on  protection  against  subsidised  imports  from  countries  not 
members of the European Community (‘basic anti-subsidy Regulation’) and Article 
23 of Regulation (EU) 2015/478 of the European Parliament and of the Council on 
common rules for imports.  

The  anti-dumping  (AD),  anti-subsidy  (AS)  and  safeguard  (SFG)  investigations 
conducted  by  the  Commission  are  governed  by  the  above  mentioned  Council 
Regulations. A comprehensive overview of the existing legislation, terminology and 
procedures is available in the accopmanying Staff Working Document.  

This short report provides an overview of the highlights in the area of Trade Defence 
in the EU during 2014 and is accompanied, as in previous years, by a Commission 
Staff  Working  Document,  together  with  detailed  annexes.  This  report  follows  the 
same general structure of the Staff Working Document, including all its headings, for 
easy reference to more comprehensive information. 

The present report and the Staff 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  ANTI-DUMPING,  ANTI-SUBSIDY  AND  SAFEGUARD  INVESTIGATIONS 
AND MEASURES 

1.1. 

General 

The number of measures in force and ongoing investigations is broadly in line with 
those  in 2013. The  ‘portfolio’ of cases has however changed. Indeed,  the ativity in 
2014 was characterised by a return to more new investigations and a reduction in the 
number of reviews (notably expiry reviews) as compared to the previous year. 

At the end of 2014, the EU had 81 AD measures and 13 AS measures in force. 

In 2014, 0.29% of total imports into the EU were affected by AD or AS measures. 

A  detailed  overview  is  given  in  the  Staff  Working  Document  accompanying    this 
report. The references to the Annexes of the Staff Working Document can be found 
beside the titles.  

With regard to the figures on initiations and conclusions of cases in the subsequent 
sections,  note  that  most  of  the  cases  concluded  in  2014  had  been  initiated  in  2013 
while many of those initiated in 2014 will come up for decision in 2015. 

1.2. 

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

In 2014, 16 new investigations were initiated. Provisional duties were imposed in 2 
proceedings.  3  cases  were  concluded  with  the  imposition  of  definitive  duties.  4 
investigations were concluded without measures.  

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1.3. 

Review investigations 

Review  investigations  continue  to  represent  a  substantial  part  of  the  work  of  the 
Commission  TDI  services.  Table  2  in  the  Staff  Working  Document  provides 
statistical information for the years 2010-2014. 

1.3.1.  Expiry reviews (see Annex F) 

Articles  11(2)  of  the  AD  and  18  of  the  AS    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  2014,  2  measures  expired  automatically 
following their 5-year duration. 

During 2014, 10 expiry review investigations were initiated. 8 expiry reviews were 
concluded  with  a  confirmation  of  the  duty  for  a  further  period  of  5  years.  4  expiry 
reviews were concluded by the termination of measures.  

1.3.2. 

Interim reviews (see Annex G) 

Articles  11(3)  of  the  AD  and  19  of  the  AS    Regulations  provide  for  the  review  of 
measures  during 
to 
dumping/subsidization or injury aspects. 

their  period  of  validity.  Reviews  can  be 

limited 

During  2014,  a  total  of  5  interim  reviews  were  initiated.  5  interim  reviews  were 
concluded  with  confirmation  or  amendment  of  duty.  2  interim  reviews  were 
concluded with the termination of the measures.  

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

There were 3 'other' reviews, i.e. not falling under Articles 11(3) of the AD or 19 of 
the AS Regulations, concluded in the period. There were no such reviews initiated. 

1.3.4.  New exporter reviews (see Annex I) 

Articles  11(4)  of  the  AD  and  20  of  the  AS  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 2014, 2 new exporter reviews were initiated while 3 such reviews was concluded.  

1.3.5.  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 of the AD and 19(3) of the AS  Regulations. 

In 2014, there were 2 anti-absorption reviews initiated and none concluded.  

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1.3.6.  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 
of the AD and 23 of the AS Regulations. 

In  2014,  3  such  investigations  were  initiated.  There  was  1  anti-circumvention 
investigation concluded with extension of the measures.  

1.4. 

Safeguard investigations (see Annex L) 

During 2014 the  EU did not impose any safeguard measures.   

2. 

ENFORCEMENT OF AD/AS MEASURES 

2.1. 

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  Commission  to  pro-actively  in 
cooperation  with  Member  States  ensure  the  proper  enforcement  of  trade  defence 
measures in the European Union.  

2.2.  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  2014,  there  were  134  undertakings  in  force.  During  2014,  the 
following  changes  to  the  portfolio  of  undertakings  took  place:  The  undertaking  of 
one company was  withdrawn as  it was established that  a  breach had occurred. The 
undertakings  for  two  companies  were  withdrawn  due  to  changes  in  circumstances 
during  the  implementation  of  the  undertakings.  The  undertaking  for  one  company 
expired and the undertaking for one company was annulled by the European Court of 
Justice.  No  new  undertaking  was  accepted.  This  brought  the  total  number  of 
undertakings in force at the end of 2014 to 129.  

3. 

REFUNDS  

Articles 11(8) of the AD and 21(1) of the AS 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 2014, 42 new refund requests were submitted. At the end of 2014, 13 refund 
investigations  were  on-going,  covering  31  requests.  In  2014,  31  Commission 
Decisions  were  adopted:  20  granting  a  partial  refund  and  11  rejecting  the  refund 
requests. 10 requests were withdrawn. 

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4. 

TDI MODERNISATION  

Following  the  adoption  by  the  Commission  in  April  2013  of  a  legislative  proposal 
and  a  Communication,  the  ordinary  legislative  procedure  is  under  way  in  the 
European  Parliament  and  in  the  Council.  The  Parliament  voted  a  legislative 
resolution  in  April  2014  and  thus  closed  its  first  reading.  At  that  time,  the 
Commission also took note of draft guidelines on four subjects with a view to their 
adoption once the legislative process was more advanced. 

The modernisation exercise is important for stakeholders as it represents a means to 
adapt  the  trade  defence  instruments  (TDIs)  to  current  business  realities.  Today’s 
trading  environment  is  significantly  different  from  the  one,  at  the  time  of  the 
completion  of  the  Uruguay  Round  over  20  years  ago,  when  the  last  important 
changes to the global rules governing TDIs were made. Therefore, there is a need to 
improve the EU's current trade defence system for the benefit of all stakeholders.  

The aim of the modernisation exercise is to render the instruments more efficient and 
effective.  By  finding  practical  solutions  to  real  problems  which  stakeholders 
encounter,  the  TDIs  are  intended  to  become  more  accessible  and  measures  better 
targeted  responses  to  certain  unfair  trading  practices  exercised  by  our  trading 
partners.  Other  important  elements  of  the  project  are  increased  transparency, 
particular  attention  to  SMEs,  while  keeping  the  balance  of  interests  an  essential 
feature.    

 5. 

COUNTRY-WIDE MARKET ECONOMY STATUS (MES) 

The  current  practice  is  that  a  country  can  be  considered  a  market  economy  for  the 
purposes of anti-dumping investigations if it fulfils five criteria as set out also in the 
Staff  Working  Document  accompanying  this  report.  Six  countries  have  requested 
country-wide MES: China, Vietnam, Armenia, Kazakhstan, Mongolia and Belarus. 

In  2014,  Vietnam  and  Kazakhstan  provided  further  information  in  support  of  their 
requests. The information provided was verified during special MES working group 
meetings  with  officials  from  relevant  Ministries  in  both  countries  during  the  year. 
This,  along  with  other  information  from  independent  sources  formed  the  basis  for 
updating    country-specific  assessments  by  the  Commission,  which  continued  up  to 
the end of 2014. 

In April 2014 the Commission services shared an assessment report with Mongolia 
on  its  progress  in  relation  to  MES,  in  which  the  fifth  criterion  was  considered  as 
being fulfilled. The report also consluded that despite some progress in relation to the 
other criteria it was not sufficient to justify the granting of any of the remaining four.    

As regards China, since 2008 no consultations on MES have taken place. In 2014, the 
Commission  remained  willing  to  discuss  further  progress  made  by  China  towards 
MES, expecting that the Chinese authorities would continue to engage in the exercise 
and deliver the necessary information for the MES analysis by the Commission.   

Armenia  reactivated  its  engagement  in  the  MES  process  during  2014  by  providing 
some  updated  information  on  developments  in  the  economy  as  well  as  replies  to 
questions which had been sent in 2010.  The assessment on the file continuned on the 
basis of this new information. As regards Belarus any work on this file has been on 
hold since 2010 due to the political situation in the country.  

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6. 

INFORMATION AND COMMUNICATION ACTIVITIES/ BILATERAL CONTACTS  

6.1. 

Small and medium sized enterprises (SMEs) 

Participating in Trade Defence investigations can pose certain challenges for SME's 
owing to their small size and resource constraints. In order to help SMEs deal with 
the  complexity  involved  in  TDI  investigations  a  Helpdesk  for  SMEs  was  set  in 
December  2004.  In  2014,  the  Helpdesk  continued  to  deal  with  requests  for 
information. These questions ranged from case-specific queries to more general trade 
defence 
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.  

issues  addressing  both 

6.2. 

Bilateral contacts/information activities – industry and third countries 

Explaining the legislation, procedures and practice of the EU's trade defence activity 
is an important part of the work of the Commission TDI services. 

The  Commission  organized  two  training  seminars  on  EU  trade  defence  policy  and 
practice  for  officials  from  several  third  countries  in  2014.  There  were  a  number  of 
other  bilateral  contacts  dedicated  to  discussing  various  trade  defence  topics  with  a 
number  of  third  countries  including  China,  Korea,  Japan,  Australia,  Vietnam  and 
Morocco.  

As  regards  industry  and  business  organisations  in  the  EU,  there  was  a  seminar  in 
February 2014 which brought together the various stakeholders to discuss aspects of 
the  EU's  trade  defence  policy  and  practice.  The  attendees  included  representatives 
from both producers' and importers' associations as well as the distribution sector. In 
addition  a  number  of  meetings  with  European  key  stakeholder  associations  (e.g. 
Business Europe) took place in 2014.   

7. 

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.   The  role  and  powers  of 
the  HO  are  set  out  in  a  formal  mandate  by  a  Decision  of  the  President  of  the 
European  Commission,  guaranteeing  due  process  in  trade  proceedings  and  the 
impartiality of the function. The HO is attached, for administrative purposes, to the 
Commissioner responsible for trade policy. The activities of the Hearing Officer will 
no longer be addressed in this report, but will be available in a separate report which 
can be found on (insert link).   

http://ec.europa.eu/trade/trade-policy-and-you/contacts/hearing-officer/ 

8. 

JUDICIAL REVIEW: DECISIONS GIVEN BY THE COURT OF JUSTICE (COJ) / GENERAL 
COURT (GC) (SEE ANNEX S) 

In  2014,  the  General  Court  ('GC')  and  the  Court  of  Justice  ('COJ')  rendered  28 
judgments  in  total  relating  to  the  areas  of  anti-dumping  or  anti-subsidy.  5  of  the 
judgments  of  the CoJ concerned appeals against the General Court decisions and 4 
were preliminary rulings.  

There were 37 new cases lodged in 2014. 28 of these were lodged before the GC and 
9 before the CoJ. 

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A list of the AD/AS cases before the GC and the COJ still pending at the end of 2014 
is given in Annex S of the Staff Working Document. 

9. 

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

9.1. 

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. 

Two  panels  were  composed  in  2014,  i.e.  the  panel  concerning  anti-dumping 
measures  on  imports  of  fatty  alcohols  from  Indonesia  (DS442)  and  the  panel 
regarding anti-dumping measures imposed on biodiesel from Argentina (DS473). In 
DS397 (compliance procedures following the WTO dispute relating to EU definitive 
anti-dumping measures on certain iron or steel fasteners from China), the substantive 
meeting between parties and with third parties took place in November 2014.  Lastly, 
the EU held consultations with Russia on cost adjustment methodologies and certain 
anti-dumping  measures,  the  Panel  was  established  on  22  July  2014  (DS474),  with 
Indonesia on anti-dumping measures on biodiesel (DS480) and with Pakistan on the 
countervailing measures on imports of PET (DS486).  

9.2. 

Other WTO activities  

There was no negotiating activity during 2014 for the Negotiating Group on Rules. 
the  Group,  Ambassador  Wayne  McCook,  held  open-ended 
The  Chair  of 
consultations with the WTO Membership on 16 December 2014 to discuss possible 
ways forward in the rules areas in 2015, including the organisation of a stock-taking 
session and possible work on transparency. 

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  including  sunset  reviews,  price 
undertakings and product under consideration.  

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  special  sessions  of  the 
committee  to  review  notifications,  including  the  EU's  2013  New  and  Full  Subsidy 
Notification.   

10. 

CONCLUSION 

2014  was  characterised  by  an  increase  in  the  opening  of  new  investigations  and  a 
reduction in the number of expiry reviews. As in previous years this reflects the type 
of complaints which were lodged and which were supported by prima facie evidence. 
Continuing the trend of prevous years, no safeguard action was taken by the EU.    

Work  continued  on  the  Modernisation  of  the  Trade  Defence  instruments  proposal  
with the Parliament voting a legislative resolution in April 2014 and closing its first 
reading and with discussions in the Council.  

The Commission TDI services also continued their information activities targeted  at 
third country officials, the Union industry and importers.   

8