Trade Defence Instruments

1. Trade Defence Instruments Presentation Before and after Enlargement experience Dipl. Ing. Vladimir Jarunek General State Counsellor

2. Common Trade Policy Participation Impact Impact on new member state: • The new Member States no longer apply trade defence action on a national basis. All measures taken by the new Member States disappear. On-going investigations by the new Member States are not continued. · None of the 25 Members States can use trade defence instruments against each other. All trade defence measures that the current EU Member States have against imports from any of the new Member States drop automatically, a. Equally, measures among the new Member States also disappear.

3. Common Trade Policy Participation Impact Impact on new member state: • The single set of laws and measures currently applicable in the current 25 Member States will be automatically applicable in the new Member States. The EU investigations that are on-going will continue to be pursued, except for those related to the exports from the new Member States. · The need to engage in trade defence action is assessed by the Commission and the Council on the basis of the entire enlarged EU. In certain cases, action may be taken to counteract dumping or subsidised imports in particular regions of the internal market, but such regional cases are likely to be exceptional.

4. Impact on producers • 1. TRADE DEFENCE MEASURES PROTECT EU PRODUCERS OF GOODS FROM IMPORTS MADE AT UNFAIR CONDITIONSSome goods imported into the EU are dumped or subsidised. These practices are considered unfair by international trade law. Imports of such goods may harm EU producers, because they face unfair competition in the EU market.

5. Impact on producers • 2. WHAT HAPPENS TO CURRENT TRADE DEFENCE MEASURES IN THE EU-25 AND THE NEW MEMBER STATES?Measures applicable in the EU-25 will be extended automatically to the new Member State… Upon enlargement, the measures in force in EU-25 will automatically be extended to all new Member States. They will be applicable on an EU-25 level. In practical terms, this means that producers in the new Member State will benefit from the remedial effects of all the trade defence measures that are in force in the EU-25 upon enlargement.

6. Impact on producers Existing measures in the new Member State will disappear. If you are a producer in the new Member State, you should bear inmind that measures which are in force in your country against third country imports (including other new Member States and EU-25) will automatically disappear upon enlargement. Instead, measures currently in force in EU-25 will be applicable at an EU-28 level (see above). Of course, some products which are under trade defence measures in the ten new Member States today, might also be subject to trade defence measures in EU-28. In such a case you, as a producer, might not notice a big change. Still, the measure might be of a different kind (e.g. anti-dumping instead of safeguard), at a different level (higher or lower) or take a different form (e.g. duty instead of quota) than the measure you benefit from today in your own country.

7. Impact on producers For producers in EU-25, trade defence measures against new Member States will disappear.It is not possible to apply trade defence measures among Member States because the EU constitutes one single market. Therefore, all EU-25 measures vis-à-vis the new Member State will disappear upon enlargement. If you are a producer in EU-28, this means that you will not any longer, after enlargement, benefit from the remedial effects of the measures which the EU-25 apply against exports from any of the new Member State.

8. Impact on producers 3. DEFENDING YOUR INTERESTS AGAINST UNFAIR TRADE IN AN ENLARGED EU If you are suffering from the effects of unfair trade, this is how you can apply for a measure. You can apply for a measure via a complaint to the Commission. In such a complaint you would have to show that you suffer injury from unfair trade practices by a third country. The Commission will analyse the complaint and open an investigation if it considers that there are sufficient grounds to do so. An investigation takes up to 15 months. It is the Council (composed by one representative from each Member State) which takes the final decision to impose a definitive measure. A provisional measure may also be imposed during the investigation.

9. Impact on producers The Commission can only accept a complaint which is supported by producers accounting for a major proportion (at least 25%) of the total EU production. In order to ensure sufficient support for complaints after enlargement, producers in EU-25 and the new Member States should act together. However, confidential business data should not be shared among producers who are also competitors. This is why many industries choose an independent body to collect such data (e.g. industrial associations, legal advisers or consultants). In practice this means that, as a producer in EU-28, you should not rely only on your counterparts in the other Member States of EU-25. You will have to act on an EU-25 basis and you might therefore need support from producers in the new Member States as well. The same is of course true for producers in one of the new Member States: you will have to get used to acting at an EU-25 level, i.e. together with producers in EU-25 and in the other new Member States.

10. Impact on producers Some existing measures may be too low to offset the effects of unfair trade after enlargement, but they can be reviewed. You should know that the EU legislation foresees a number of possibilities to modify existing measures to ensure that producers are rightly protected from imports at unfair trade conditions. If, for example, you notice upon enlargement that an existing measure has become too low to effectively counter unfair trade practice in third countries, you can request a modification of the measure through an interim review. Upon accession, you will also have the option to request an enlargement-specific re-examination. In addition, you should know that there are several other reviews at hand: expiry reviews, absorption reviews and anti – circumvention reviews.

11. Impact on producers • 4. HOW ABOUT IF YOU ARE THE TARGET OF TRADE DEFENCE ACTION BY NON-EU COUNTRIES? The Commission helps all EU-25 producers defend themselves against trade defence measures by third countries. Upon enlargement, the Commission will be there to help all EU-25 exporters defend themselves where trade defence action is taken against them by third countries. When a third country initiates a new investigation or opens a review of an existing measure, the exporters concerned have certain rights and obligations. The Commission will help you as an exporter in EU-25 to fully exercise those rights and fulfil those obligations. Please consult the information regarding measures in force in third countries against EU-25 and its Member States.

12. Impact on producers 5. GETTING READY FOR THE ENLARGEMENT: DO NOT WAIT UNTIL IT HAS HAPPENED, START PREPARING NOW! A check list: Do not wait to act until enlargement as this might cause irreparable damage to you as a producer. You may suffer injury from dumped or subsidised imports or from a sudden increase of imports from third countries after enlargement. Therefore, make sure that you can act swiftly already on the first day of enlargement. You do this by: • establishing contact with the other producers in EU-25 and the new Member States (easiest through industry associations) already today. • getting informed about which changes you will face with regard to trade defence measures after enlargement - e.g. are there any measures which concern you today that will disappear upon enlargement

13. Impact on producers • getting acquainted with the procedures to follow when lodging a complaint or requesting a review. If you intend to lodge a complaint or a review immediately upon enlargement, start preparing your complaint/review request well in advance. Do not forget that a complaint which is lodged after enlargement must be supported by producers accounting for a major proportion (at least 25%) of the total EU-25 production (see above).

14. Impact on importers, users, suppliers and consumers Trade defence action simply opposite to importers and suppliers interests, mainly import of goods from third countries can be changed. Trade defence action increase quality of goods and protect customers.

15. Communication • Between Member State and COM • Between Third Country institution and COM • Between Member State Institution and Associations (Importers, Consumers, Exporters) • Open and prepare quick channels

16. Identifying of national interest • COM proposal • Open a quick channels to associations • Check the statistical data • Listen the arguments in the frame of AD+AS+SFG • National interest may be different from the Community interest

17. AD Investigation Theory Day Proceeding 0 Publication of Initiation in OJ 1 COM sends Questionnaires 41 Deadline for answering 60-255 COM Examines replies, ver. visits 255-250 COM draft examination report 255-270 COM informs interested parties 270 Publication of prov. measure in OJ

18. AD imposition definitive measures Day Proceeding 25 Publication of Initiation in OJ 25-120 COM sends Questionnaires 120 Deadline for answering 140 COM Examines replies, ver. visits 250 COM draft examination report 250-170 CQG, Coreper, Council of Ministers, Decision 180 Publication of final Reg. in OJ

19. Practice- AD Case - Hot Coils • Complaint send to COM on 21. 11. 2001 • Initiation 19. 12. 2001 – publication OJ • 20. 9. 2002 – 9 month period ended – no provisional measures imposed • Ongoing communication • 18. 3. 2003 – Council Decision on imposing final Regulation ...Bulgaria complaints about discrimination ...discussion...revision of AD Case again

20. Practise on Comunity Industry • Any case – support of Comunity Industry 50 % above, however lower rate when not higher rate against. • Join the European Associations on increase protection against serious injury • Win new market in EC

21. Guideline - to draft complaint • Where? European Commission Office of Complaints, TDI Service {office:J-79 06/33} Rue de la Loi 200, B-1049 Brussels, Belgium Phone: +32-2-298 78 73 Fax: +32-2-295 65 05 E-mail: TRADE-Defence-Complaints@cec.eu.int • How?1. General Information: A. Complainant: 1/ The complainant 2/ Representativenees 3/ Other producers in the EC B. Product concerned: 1/ Definition 2/ Description 3/ Customs duties and other trade measures

22. Guideline - to draft complaint How?2. Dumping: A. Product types B. Normal value: 1/ Choose of analogue country {if non/market or transition economy} 2/ Normal Value Calculation C. Export price calculation D. Price comparison E. Dumping margin 3. Injury: A. Consumption in the EC B. Volume and market share of dumped or subsidized imports C. Price of dumped or subsidized imports D. Price undercutting E. Production, capacity and utilisation of capacity of the complainants

23. Guideline - to draft complaint How?3. Injury: F. EC sales, market share and export of the complainant G. EC sales price of the complainant H. Cost of goods sold by the complainants in the EC I. Profitability of the complainants J. Employments of the complainants K. Investments of the complainants L. Stocks variations M. Other injury elements of the complainants N. Other injury factors O. Threat of injury P. Material retardation

24. Guideline - to draft complaint How? 4. Causality 5. Conclusion Annexes: Examples: List of known exporters List of known importers Brochures of product concerned List of known producers List of known users, their associations Technical information about product type etc.

25. Guideline - to draft complaint How?3. Injury: F. EC sales, market share and export of the complainant G. EC sales price of the complainant H. Cost of goods sold by the complainants in the EC I. Profitability of the complainants J. Employments of the complainants K. Investments of the complainants L. Stocks variations M. Other injury elements of the complainants N. Other injury factors O. Threat of injury P. Material retardation

26. Discussion • Some transition problems concerning new market • Creating associations • Creating communication channels • Others

27. Thank you for your attention.