On 19 December, the European Union published in the Official Journal of the European Union the new regulation on anti-dumping and anti-subsidy measures. The new law, Regulation (EU) 2017/2321, amends previous Basic Anti-dumping legislation and brings a country-neutral approach to investigations. This new regulation aims at countering the injurious effects on the European market of dumped and subsidised goods from countries whose economies are affected by “significant distortions”.
Where significant distortions are found in a third country’s economy, domestic prices that are typically used to calculate the normal value of the product will instead be replaced by undistorted costs of production and international benchmark prices, in order to overcome the effect of market distortions. Domestic costs used in the calculation of the normal value of the product will have to be “positively established not to be distorted”. The new regulation is thus intended not to place additional burden of proof on the EU industry.
The new methodology will be supplemented by investigatory reports, to be produced by the European Commission, on market distortions in the economies of third countries. Such a country report (staff working document) listing significant distortions in China has been prepared by the Commission and identifies cross-cutting distortions, distortions in the factors of production, and distortions in selected sectors including ceramics. The European Ceramic Industry will read with interest the Commission staff working document. Distortions found as a result of these reports will inform future anti-dumping or anti-subsidy calculations. This new methodology will apply to future cases and expiry reviews of ongoing cases, though there will be no change to measures already in place. The European Commission also published a procedural guide for companies on ‘How to make an anti-dumping complaint’.
To read more information, please follow the Commission Press Release.