Introducing a produduct uct into the commerce of another country at less than its normal value. | TRADING WITH THE EC: LEGAL ASPECTS GOARNISSON Olivier Sidley, Austin, Brown & Wood Brussels - Belgium Square de Meuus 35 +32. 2. 504. 64. 12 Outline: The European Community: description and purposes; 2. Dumping and the EC anti-dumping policy; 3. The EC anti-dumping procedure; 4. What can be done to limit the damages? 1. The European Community. 1. 1. What is the EC? Not a state (country), like the US; But An international organization, like the United Nations. 1. 2. Principles of the EC. Free movement of goods; Free movement of services; Free movement of persons (employees); Free movement of capital; 1. 3. Free movement of goods. Consequences. 1. 4. The EC is a member of the WTO. 2. Dumping and the EC anti-dumping policy. 2. 1. What is dumping? See WTO Dumping Agreement: « Introducing a produduct into the commerce of another country at less than its normal value. » The export price is less than the price, of the like product, destined for consumption, in the exporting | TRADING WITH THE EC: LEGAL ASPECTS GOARNISSON Olivier Sidley, Austin, Brown & Wood Brussels - Belgium Square de Meuus 35 +32. 2. 504. 64. 12 Outline: The European Community: description and purposes; 2. Dumping and the EC anti-dumping policy; 3. The EC anti-dumping procedure; 4. What can be done to limit the damages? 1. The European Community. 1. 1. What is the EC? Not a state (country), like the US; But An international organization, like the United Nations. 1. 2. Principles of the EC. Free movement of goods; Free movement of services; Free movement of persons (employees); Free movement of capital; 1. 3. Free movement of goods. Consequences. 1. 4. The EC is a member of the WTO. 2. Dumping and the EC anti-dumping policy. 2. 1. What is dumping? See WTO Dumping Agreement: « Introducing a produduct into the commerce of another country at less than its normal value. » The export price is less than the price, of the like product, destined for consumption, in the exporting country. 2. 2. Example of dumping. 2. 3. What is an anti-dumping duty? 2. 4. Effects of an anti-dumping duty. Before Year 1 Year 2 Year 3 Tungstene ore (t) 488 95 121 11 Barium (t) 1 134 71 150 40 CTV’s (mln) 0,4 0,5 0,1 0,1 Car radios (mln) 4,9 1,1 0,8 0,5 Average 100 38 18 8 Do the WTO agreements forbid dumping? No! But: the importing countries are allowed to apply an anti-dumping duty under certain conditions. Conditions: 1° dumping is evidenced; 2° injury (or threat) to the national industry is evidenced; 3° causal link. 3. The EC anti-dumping procedure. 3. 1. The key institutions (1). The EC Council of Ministers: 25 members; One minister of international trade from each Member State; They vote (decide) on the imposition of an anti-dumping duty. 3. 2 The key institutions (2). The European Commission; Members (Commissioners) designated by the EC Council of Ministers; Members do not depend on the country they come from; Investigates the complaint; Makes a proposal to the Council
