WORKSHOP

EXCHANGING EXPERIENCES IN HANDLING TRADE REMEDY MEASURES IN EU AND VIETNAM

Overview of trade remedy measures in the EU: current trends

Presented by: Marius BordalbaSenior trade and investment expert, MUTRAPBinh Duong, Vietnam11 November 2014

*The context: Statistics (3-20)The EU system in a nutshell (21)Review of the system (22)Major issues (23)Litigation (24-25)The EUs resources (26)Main sources of information (27)

Content

The context: Statistics*

The context: Statistics*

The context: Statistics*

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Coun-try%IND15.5USA11.2EU10BRA7.39ARG6.9AUS5.91ZAF5.02

The context: Statistics*

The context: Statistics*Since the start of the crisis, the total number of initiations has increased by 30%, from 218 to 283Contrary to logic, the number of initiations decreased after 2008 in several major usersThe increase of initiations is concentrated in certain countries, Brazil and the US playing the central role

The context: Statistics*

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Coun-try%IND17.9USA11EU10.3ARG7.53BRA5.7CHN5.67TUR5.32

The context: Statistics*

The context: Statistics*Since the start of the crisis, the total number of measures has increased by 12%, from 142 to 159 However, there is a general change of trend since 2011; this trend should continue in light of the high number of initiations in 2013 & 2014 In line with initiations, for some WTO Members the number of measures has decreased (notably the EU, IND, US)The current increase of measures seems to be fuelled to a large extent by the sharp increase of investigations in BRA and to a lesser extent in certain traditional users (AUS, CDA, CHN) and in a new user (RUS)

The context: Statistics*

The context: Statistics*

The context: Statistics*

The context: Statistics*

The context: Statistics*Some important facts about the EU:Global goods imports have doubled since 2004 EUs participation has also increased notably (64%) However, in absolute numbers imports have decreased in comparison to 2011 and 2012, while exports have increasedLeaving aside mineral fuels, machinery and transport equipment constitutes the main import group, followed by other groups of manufactured goods, and chemicals

The context: Statistics*The usage of TDIs across WTO MembershipThe EU continues to be ranked 3rd in terms of initiations, after IND and US; BRA is a distant 4th but increasing quicklyFrom the peak in 2001, the number of initiations decreased, reaching 165 in 2011; since then they increased quickly and sharply (209, in 2012, and 283, in 2013)The largest users in 2013 included BRA (54), US (39) and IND (29)The EU only initiated 4 investigations in 2013, and 13 in 2012 Low numbers in comparison with its share of World importsMain sectors covered by investigations: World: XV, followed very distantly by VI and VII EU: XV, followed very distantly by VI and XVI

The context: Statistics*Measures Overall the EU remains ranked the 3rd in terms of measures, behind IND and the USthe number of measures imposed in 2010-2012 has been among the lowest; however 2013 shows a change in the trend with 39 more measures than in 2012 and 50 more than in 2011while the peaks of 2000 and 2003 are still far away, the increase of initiations may lead to high number of measures in 2014 and 2015In spite of the severe crisis, the average number of measures per year imposed by the EU during the period 2010-2013 is much lower than in 2000-2004 and 2005-2009BRA and IND have been the two countries that imposed the largest number measures in the past 4 yearsMain sectors: XV, VI and VII (World); XV, VI and XVI (EU)

The context*Summary:In spite of the crisis, the EU has not been among the most active users of TDIs and certainly below its participation in global imports However, if we look at the most recent past (2013) and current year, the trend in the EU is similar to other users, i.e. sharp increase in initiationsBecause of time lag between initiation and conclusion of an investigation, the impact on the number of measures will only be seen in 2015 and 2016With the sharp increase of investigations and measures, trade friction should be expected to increase in the short and medium term

The EU system in a nutshell3 Regulations adopted following the conclusion of the Uruguay RoundBased on the relevant WTO Agreements, with important additional requirements, e.g. lesser duty rule based on injury marginpublic interestNon-market economy/dumping calculationSupranational in nature competence lies with the EU institutionsDecisions reviewable by the EU Courts (2 levels)Implementation remains mainly national (customs offices)

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Review of the systemEvaluation of TDIsMain conclusions and recommendationsReaction by the Commission Preparation of a proposal to amend the AD and AS regulations; main content and current situationSystem in constant change to adapt to best practices and findings of the WTO and EUCJ:Main changes following the WTO challengesMain changes following EUCJ rulingsImproved transparencyHearing officer*

Major issuesGlobalisation and its impact on production and tradeConcentration on intermediate and final productsFrom bringing TD cases against raw materials to challenging export restrictions in the WTO Political issues recent casesHow to address tit-for-tat or retaliation?Small and medium enterprisesHow to make it easier for SMEs to use TDIs?*

LitigationCoping with increased litigation in WTO:5 requests for consultations (DS405-CHN, 442-IDN, 473-ARG, 474-RUS and 480-IDN)1 panel report issued (DS405); found a few violations of the WTO ADA; measure expired1 panel established but not composed (DS442)1 panel established and composed (DS473); expected in mid 20151 panel established, under composition (DS474)1 ongoing consultations (DS480)*

LitigationHorizontal issues under examination in the WTO:Dumping:The consistency of various provisions of the ADR (2.3, 2.5 and 2.6(b)) with WTO obligationsThe application of the particular market situation clause to raw materialsThe use of costing information from outside the country of originCausality and non-attribution analysis*

The EUs resources*DG TRADE, Directorate H, which is divided in 6 unitsH1: General policy, Relations with the WTO, Relations with industry (Office of complaints: 12 officials)H2-6: Deal with investigations, follow-up of measures (monitoring of implementation and anti-circumvention), and third country investigations Resources available: 140 officials, including administrative support directly assigned to Directorate HThis excludes officials in other Directorates of DG Trade that may deal with e.g. WTO DS in the area of trade defenceMore information on the Annual Activity Report 2013 and its annexes

Main sources of informationDG Trade websiteEleventh Report: Overview Of Third Country Trade Defence Actions Against The European Union For The Year 2013 Annual Activity Report 2013 of the DirectorateBasic AD RegulationBasic AS RegulationMain Safeguards Regulation WTO website*

*Contact :EU-MUTRAP Project Management Unit1203, 12th Floor, Office Building, Hanoi Tower, 49 Hai Ba Trung, Hoan Kiem, Ha NoiTel: (84 - 4) 3937 8472 Fax: (84 - 4) 3937 8476Email: mutrap@mutrap.org.vn Website: www.mutrap.org.vn (Training materials are available on the above website)

*Data only until end of May 2014; actual data shows a much higher number of initiations**********