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Changes (?) and Trends in EU-Trade Defence System

Changes (?) and Trends in EU-Trade Defence System. 10th Anniversary of China’s Anti-Dumping practice 24-26th June, 2007 in Beijing Harald Wenig, EU Commission. What’s new in Brussels?. New trade pattern: Producer / Importer Competition aspects Environmental / Social aspects

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Changes (?) and Trends in EU-Trade Defence System

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  1. Changes (?) and Trends in EU-Trade Defence System 10th Anniversary of China’s Anti-Dumping practice 24-26th June, 2007 in Beijing Harald Wenig, EU Commission

  2. What’s new in Brussels? New trade pattern: Producer / Importer Competition aspects Environmental / Social aspects Transparency Politisation MES China Trade Policy and Steel / Textiles Green Paper

  3. New trade patternProducer / Importer • Globalisation changed the “front lines” • What is a “producer” ? • R&D in Europe ? • Value of production ? • Investment in exporting country ? • What are the consequences ? • Importers/producers can oppose • Injury determination will be changed

  4. Competition aspects I • No international competition rules • Distortions not allowed internally - Why externally? • The sources of AD/AS • State aids is (relatively) clear but: • Dual pricing? • Input subsidies • No specificity

  5. Competition aspects II - The sources of “dumping” • Tariff/Non-tariff barriers • High custom duties • Customs procedures, certifications, standards, norms • Private “cartel agreements” • “Abuses” of a (pre-) dominant position • State interventions in economic operations

  6. Competition aspects III • Examples of state intervention: • *Un-performing loans by state banks • *Export obligations/incentives • *Import/export restrictions • *No enforcement of accounting • *Establishing « Strategic industries » • *No competition law

  7. Environmental / Social aspects • Cost/Competitive advantages of no or low standards • The classic principle: not in TDI • The « double whammy » argument • The flavour of the day? • Arguments on Public Interest Test

  8. Transparency • The big issue in EU • Access to confidential files? • TDI as more judicial procedure • *Hearing officer • *Role of lobbying • *Published deadlines • *Published minutes • More assistance to SMEs? • *Established practice for EU companies • *No discrimination for exporters?

  9. Politisation • Real problem in EU • *27 Member states • *No homogeneous industrial fabric • *Large discretion in certain areas • Not only an EU problem • *Monopolized exporting industry • *Direct links to Government • *Insufficient legal system • *Good governance: work in progress

  10. MES China • Is it political or technical? • Is there light at the end of tunnel? • MES and competitive distortions • *Free access to state budget? • *Policy considerations VS Economic rationale • Why not subsidy law? • *Is the US approach a good one? • *Input subsidies/specificity

  11. Trade Policy and Steel / Textiles • Textile quotas disappear end of 2007 • China Textiles / Steel: • Excess capacity • State support • Market economy? • Remedies: • Negotiations, export tax • Double licence system • TDI? • Market access ?

  12. Green Paper • Conflict of interests between: • producing and • trading companies • Transparency • Politisation • Link with other policies • Procedural questions

  13. Green Paper State of play and main points : • Main points raised by importers • Strengthen the Community Interest Test – give importers more weight • development policy consideration • Reduced duration of measures • Increase thresholds (e.g. standing, de-minimis) • Higher injury standards • Main points raised by producers • Environmental and social considerations in the Community Interest Test (e.g. • Community Interest Test not applied if social and/or environmental dumping • Avoid double whammy • Creation of an independent agency • More effective and rapid imposition and implementation of measures

  14. TDI – The future is bright (?) • Trade liberalisation and Safety valve • Less TDI – More protectionist pressure • Without competition law, what else? • DG Comp. Int. (??)

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