MNI: Europe To Sharpen Trade Tools To Tackle Dumping
MNI (BRUSSELS) - The European Commission will "sharpen" its trade tools to make sure the European Union does not become a "backfilling destination" for excess global capacity in an era of increased “global geo-economic competition,” it said in an early draft of its Clean Industrial Deal seen by MNI.
"As protectionist measures are multiplying across the globe, there is a risk that global overcapacities will be redirected to the EU market," it said in the document due to be published later this week.
"We have entered an era of global geo-economic competition with the necessity to protect the global level playing field and ensure that the EU market does not serve as a backfilling export destination for excess global capacity." (See MNI: EU Eyes National Escape Clauses To Boost Defence Spending)
The draft says the Commission will continue to make "fast and efficient" use of its 'Trade Defence Instruments", such as the anti-dumping and anti-subsidy duties which it deployed last year to limit the imports of cheap EV and EV batteries from China.
"To protect our industries from unfair competition and ensure that our market does not serve as an export destination for state-induced excess global capacity we will sharpen existing Trade Defence Instruments, including through shortening investigation timelines or making greater use of ex officio procedures."
'Ex officio procedures' allow the Commission to start investigations on its own initiative if it has information that indicates foreign subsidies are distorting competition in the EU internal market.
The draft also moots raising so-called "bound tariffs" - i.e. WTO-agreed Most- Favoured-Nation tariffs and also suggests using existing exemptions from these WTO commitments, such as those for environmental protection, in order to combat unfair trading competition.