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EU Sees Slowdown in Foreign Trade Remedy Cases

Wednesday, May 01, 2013
Sandler, Travis & Rosenberg Trade Report

The European Commission has released its tenth annual report on foreign countries’ trade defense actions (e.g., antidumping and countervailing duty orders) against European Union products. The Commission states that while such actions have stabilized in recent years after a steep increase in 2008-2009, cases are becoming more complex and more countries are using them. Highlights of the findings of the Commission’s 2012 report include the following.

- There were 138 measures in force against the EU at the end of 2012, not much changed from 2011, compared to an increase from 123 to 146 between 2010 and 2011.

- The vast majority of these measures are AD actions (94), with safeguards representing about one-third of the total.

- India (21) overtook the U.S. (18) as the country with the highest number of measures in force against the EU, followed by China (16) and Brazil and Turkey (10 each).

- Twenty new measures were imposed in 2012, down from 36 in 2011. The number of new safeguard measures declined from 22 to 8 while the number of new AD measures (12) was comparable to the previous year.

- Thirty-seven new investigations were initiated in 2012, up from 33 in 2011. Most new investigations concerned safeguards, and about half were initiated in the last two months of the year. Indonesia launched the most new investigations with six, followed by China, Egypt and Turkey with four each.

- Several issues, mainly of a systemic nature, persist. These include the retaliatory nature of some Chinese investigations, the high number of newly initiated safeguard cases (despite a significant decrease in 2012), and the lack of transparency at the initiation stage and when the results of investigations are disclosed.

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