Threads / Final Findings of the Call for Evidence into UK Interest in…

Consultation Outcome Published 25 Feb 2019 Department for Business and Trade HM Treasury Trade Remedies Authority ↗ View on GOV.UK

Final Findings of the Call for Evidence into UK Interest in Existing EU Trade Remedy Measures

The formal government response (published 25 February 2019) to the 2017–18 DIT Call for Evidence, setting out which inherited EU anti-dumping and anti-subsidy trade defence measures met the criteria to be transitioned into the UK's independent trade remedies framework and reviewed by the TRA. This is the definitive 'government response to the trade remedies call for evidence' document and the foundation of the inherited trade defence architecture.

▤ Verbatim text from source document

Final findings of the call for evidence into UK interest in existing EU trade remedy measures - GOV.UK

Cookies on GOV.UK

We use some essential cookies to make this website work.
We’d like to set additional cookies to understand how you use GOV.UK, remember your settings and improve government services.
We also use cookies set by other sites to help us deliver content from their services.

You have accepted additional cookies.
You can
change your cookie settings
at any time.

You have rejected additional cookies.
You can
change your cookie settings
at any time.

Accept additional cookies

Reject additional cookies

View cookies

Hide cookie message

Department for
International Trade

Print this page

This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit
nationalarchives.gov.uk/doc/open-government-licence/version/3
or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email:
psi@nationalarchives.gov.uk
.

Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned.

This publication is available at https://www.gov.uk/government/calls-for-evidence/call-for-evidence-to-identify-uk-interest-in-existing-eu-trade-remedy-measures/outcome/final-findings-of-the-call-for-evidence-into-uk-interest-in-existing-eu-trade-remedy-measures

Action

1.
We invite you to view the final findings of the call for evidence into UK interest in existing EU trade remedy measures.

Contact
traderemedies@trade.gov.uk
for any further queries.

Introduction

2.
The Department for International Trade (
DIT
) is preparing a UK trade remedies system in readiness for the UK operating its own independent trade policy.

3.
In support of this, the department ran a call for evidence from 28 November 2017 to 30 March 2018. After the publication of the provisional findings, on 24 July 2018, the call for evidence was reopened for a further month, until the 24 August 2018. The aim was to identify which UK businesses produce, in the UK, goods currently subject to EU anti-dumping or anti-subsidy measures.

4.
We did this in order to identify which measures the UK government should maintain. This is to provide certainty to UK manufacturing industries and avoid exposing them to material injury (injury) from known unfair trade practices.

5.
We are grateful to the trade associations and other organisations which publicised the call for evidence to their members and networks, and to everyone who responded.

6.
The call for evidence asked companies, which produce goods in the UK, whether they produce goods which are subject to EU trade remedy measures. They were asked to state whether they support, are neutral to, or oppose the maintaining of those measures when the UK begins to operate its own independent trade policy. They were also asked for data about their production and sales.

DIT
used that information to assess whether the applications met the government’s criteria for maintaining a measure.

These 3 criteria are:

a. We have received an application to maintain measures from UK businesses which produce, in the UK, products subject to trade remedies measures

b. The application is supported by UK businesses which produce a sufficient proportion of those products (this mirrors the tests required by the
WTO
Anti-Dumping Agreement, Article 5.4,
, and the
WTO
Subsidies and Countervailing Measures Agreement, Article 11.4
, regarding opening trade remedies investigations)

c. The market share of the UK based producers of those products is above a certain level (that level has now been confirmed as at least 1%)

8.
This document sets out our final findings based on the data which we received from responses to the call for evidence.

Transition reviews

9.
All transitioned measures will be maintained at the same level set previously by the European Commission until the Trade Remedies Authority (
TRA
) completes a full review based on UK-specific market data. The
TRA
’s reviews will decide whether transitioned trade remedy measures should continue and, if so, at what level, once the UK begins to operate its own independent trade policy.

10.
This subsequent review process is designed to ensure any future measures fully reflect the UK market situation, thus demonstrating to the
WTO
membership, the UK’s commitment to rules-based international trade.

11.
If a measure did not receive an application to be maintained, or did not meet the required criteria, it will not be maintained when the UK begins to operate its independent trade policy.

Responses from non-producers

12.
The call for evidence was directed at UK businesses (or their representatives) which produce goods currently subject to EU anti-dumping measures or anti-subsidy (countervailing) measures and ongoing investigations.

13.
We also asked for specific information from other businesses or organisations with an interest, within the UK and internationally, including downstream consumer and user industries.

14.
The call for evidence asked specific questions and the information that non-producers provided enabled us to verify the data we had received. Non-producers were asked to provide information relevant to assessing the criteria for maintaining measures, permitting us to make an accurate assessment about whether UK producer applications met our criteria.

15.
We are grateful to all respondents for their views on certain cases. At this stage in the process we have only used the data which enables us to calculate, or verify information about, our criteria: producer support for measures and the UK market share of producers.

16.
We recognise that interested parties have strong views on the downstream impact of certain measures. When the
TRA
reviews all maintained measures, it will assess, as part of those reviews, whether measures are in the overall economic interest of the UK.

How the implementation period, Northern Ireland Protocol or Future Economic Partnership may affect this process

17.
To ensure continuity for UK business, the UK will continue to prepare for a range of potential outcomes. In a ‘no deal scenario’, the earliest point at which the UK could begin to operate its own independent trade policy will be 29 March 2019.

Implementation period

18.
The UK will leave the European Union on 29 March 2019. The UK and EU negotiating teams have reached agreement on the terms of an implementation period that will start on 29 March 2019 and last until 31 December 2020. During the implementation period, EU trade remedy rules and regulations will continue to apply. This would include applying new EU trade remedy measures that come into force during the implementation period.

19.
For any new measures, which the EU puts in place during the implementation period, we will approach any UK producers of the affected product(s). This is to understand whether there is an interest in such measures being maintained once the UK begins to operate its independent trade policy.

20.
We understand that UK production and market share of the products covered by trade remedy measures may change during the implementation period. That may mean that, towards the end of the implementation period, we will need to review some decisions about which measures we will maintain. We would do this based on up to date evidence, in discussion with relevant stakeholders. This activity will not affect the EU’s current competence, regulations and process for bringing forward new trade remedies complaints and the initiation of new investigations. UK industry should continue to approach the European Commission for the purposes of initiating new investigations until further notice.

Protocol on Northern Ireland

21.
The agreed protocol guarantees that even in the unlikely event that the UK’s future relationship with the EU is not in place by the end of the implementation period, there will be no hard border between Northern Ireland and Ireland and no customs border down the Irish Sea.

22.
The agreement preserves the economic and constitutional integrity of the United Kingdom, upholds the Belfast (Good Friday) Agreement, and ensures people and businesses that rely on an open border between the Northern Ireland and Ireland can continue living their lives and operating as they do now. It does so through a temporary single UK-EU customs territory or through an option to extend the implementation period for a short period of time until the new economic relationship is in place. The protocol also contains legally binding commitments that both the UK and EU will take the necessary steps to supersede the backstop, ensure the backstop will be temporary, and provide a mechanism which either the UK or the EU can trigger to review the arrangements.

23.
During the backstop, EU trade remedy rules and regulations will continue to apply. This would include applying new EU trade remedy measures that come into force during the implementation period and temporary customs arrangement.

Future economic partnership

24.
The UK and the EU will put in place ambitious customs arrangements. They will make use of all available facilitative arrangements and technologies in developing this ambitious customs arrangement, including examples of tools that the UK and the EU may draw on, such as trusted trader schemes. This is part of a comprehensive economic partnership, which will recognise the development of the UK’s independent trade policy.

Final findings

25.
After the provisional findings were published (24 July 2018) the deadline for the call for evidence was extended by a month (24 August 2018) to allow for further evidence to be submitted. This was to permit stakeholders in disagreement with the findings, or who had not yet been involved in the process to provide additional evidence in support of their position as to whether a trade remedy measure should be maintained.

26.
Following a wide-ranging programme of external engagement, in total we received 89 responses to the call for evidence. Of these, 52 were from producers, and 37 were from other parties.

27.
Having assessed the data provided by respondents, our final findings are that 44 of the existing EU measures met our criteria. They will therefore be maintained and subsequently reviewed by the
TRA
to recommend the appropriate level of the trade remedy measure for the UK market, once the UK begins to operate an independent trade policy. 63 did not meet the criteria and will therefore not be transitioned.

28.
On the day the UK begins operating its own independent trade policy, the additional trade remedy measures on all 63 of these measures will be terminated. This will reduce costs for UK users of these products, and lead to lower prices for UK consumers. This highlights one of the benefits of the UK being able to operate its own independent trade policy, tailored to the specific needs of the UK.

29.
Our final findings differ from the provisional findings we published in July 2018. This is only where either a measure has since expired or been terminated by the European Commission, or where we received sufficient additional evidence for maintaining an existing measure in line with the criteria set out by the call for evidence (see
paragraph 7
).

30.
The provisional decisions to terminate measures on aluminium foil in small rolls, and steel (wire) ropes and cables, have been overturned. In light of the further evidence provided, these measures will now be transitioned. A new EU measure on biodiesel from Argentina has also been added to the list and will be transitioned.

No longer included in the table are:

(i) 2 biodiesel measures against Argentina and Indonesia as they have since been repealed by the European Commission

(ii) 2 measures on ferro silicon against Egypt and Ukraine that were terminated on 5 of June 2018

(iii) 3 measures on low carbon ferro chrome against China, Russia and Turkey that expired on 23 of July 2018

(iv) 2 measures on solar panels against China that expired on 3 of September 2018

(v) 2 measures on stainless steel wires against India that expired on 9 of November 2018

Final findings - listed by name of measure

Name of measure

Case code (AD – Anti dumping, AS – Anti subsidy)

Producer application received?

Countries against which measures are applied

Producer support threshold met?

Market share threshold met?

Final finding
[footnote 1]

Acesulfame potassium

AD611

China

Terminate

Aluminium foil

AD610

Russia

N/A

Terminate

Aluminium foil in large rolls

AD534

China

N/A

Terminate

Aluminium foil in small rolls

AD582

Yes

China

Met

Maintain

Aluminium radiators

AD578

China

N/A

Terminate

Aluminium road wheels

AD541

Yes

China

Met

Maintain

Ammonium nitrate

AD330

Yes

Russia

Met

Maintain

Aspartame (sweetener)

AD621

China

N/A

Terminate

Barium carbonate

AD475

China

N/A

Terminate

Bicycles

AD287

Yes

China (extended to Cambodia, India, Malaysia, Pakistan, Philippines, Sri Lanka and Tunisia)

Met

Not met

Terminate

Biodiesel

AS644

Yes

Argentina

Met

Maintain

Biodiesel

AD531

Yes

USA (extended to Canada)

Met

Maintain

Biodiesel

AS532

Yes

USA (extended to Canada)

Met

Maintain

Bioethanol

AD580

Yes

USA

Met

Maintain

Cast iron articles

AD637

Yes

China

Met

Maintain

Ceramic tableware / Kitchenware

AD586

Yes

China

Met

Maintain

Ceramic tiles

AD560

Yes

China

Met

Maintain

Chamois leather

AD496

Yes

China

Met

Maintain

Citric acid

AD522

China (extended to Malaysia)

N/A

Terminate

Citrus fruits

AD524

China

N/A

Terminate

Coated fine paper

AD552

China

N/A

Terminate

Coated fine paper

AS557

China

N/A

Terminate

Cold rolled flat steel products

AD620

Yes

China

Met

Maintain

Cold rolled flat steel products

AD620

Yes

Russia

Met

Maintain

Continuous filament glass fibres

AD549

Yes

China

Met

Maintain

Continuous filament glass fibres

AS603

Yes

China

Met

Maintain

Corrosion resistant steel

AD639

Yes

China

Met

Maintain

Electric bicycles

AD643

China

N/A

Terminate

Electric bicycles

AS646

China

N/A

Terminate

Ferro silicon

AD516

China

N/A

Terminate

Ferro silicon

AD516

Russia

N/A

Terminate

Grain orientated flat-rolled products of electrical steel (GOES)

AD608

Yes

China

Met

Maintain

Grain orientated flat-rolled products of electrical steel (GOES)

AD608

Yes

Japan

Met

Maintain

Grain orientated flat-rolled products of electrical steel (GOES)

AD608

Yes

Korea

Met

Maintain

Grain orientated flat-rolled products of electrical steel (GOES)

AD608

Yes

Russia

Met

Maintain

Grain orientated flat-rolled products of electrical steel (GOES)

AD608

Yes

USA

Met

Maintain

Graphite electrode systems

AD469

India

N/A

Terminate

Graphite electrode systems

AS470

India

N/A

Terminate

Hand pallet trucks and their essential parts

AD474

China (extended to Thailand and Vietnam)

N/A

Terminate

Heavy (quarto) plate

AD631

Yes

China

Met

Maintain

High tenacity polyester yarns

AD547

China

N/A

Terminate