Brussels – June 20, 2017
Members of INTA Committee adopted on 20 June the legislative report amending the Commission’s proposal related to a new Anti-Dumping calculation methodology. Based on the inclusive work of the rapporteur Mr Salvatore CICU and of the shadow rapporteurs representing all political groups, the text defines more precisely what the significant market distortions are and how the Commission should produce reports on countries and sectors on the basis of which the new methodology will be triggered.
More in detail
On the basis of these amendments, the European Commission will not use domestic prices and costs as the starting point to construct the “normal value” in anti-dumping calculations for countries affected by “significant distortions”.
Once established the existence of significant distortions in a certain country/sector, the European Commission will therefore automatically construct the normal value on the basis of costs and prices reflecting undistorted prices or benchmarks for each and every factor of production.
In the construction of normal value, the European Commission will still be able to use domestic prices and costs, but only if exporting producers can clearly show that (i) they are not directly or indirectly affected by distortions, and that (ii) their factors of production are not distorted.
The INTA vote also guarantees that the “determinations” made as to the existence of significant distortions in a certain country or sector will remain in place until revoked. This system, similar to the US one, makes sure that EU industry does not have to prove the existence of significant distortions on a case-by-case basis.
Moreover, a determination can be revoked only if it is conclusively shown that the country or sector is no longer affected by significant distortions.
The INTA vote also strengthens the role of the macroeconomic reports issued by the European Commission to describe significant distortions in a certain country or sector. The reports showing the existence of significant distortions will constitute sufficient evidence to use the new non-standard methodology.
For countries which have a substantial number of antidumping cases, the report shall be adopted within fifteen days from the entry into force of the Regulation.
Then, the European Parliament includes the five market economy criteria in the definition of significant distortions, in line with what the US does. This is key to justify the use of a non-standard methodology.
Finally, concerning “grandfathering”, it is ensured that the transition period between the old system and the new one lasts until the first expiry review after the transition is terminated (and not initiated).