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TRADING WITH THE EC: LEGAL ASPECTS ppsx

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TRADING WITH THE EC: LEGAL ASPECTS GOARNISSON Olivier Sidley, Austin, Brown & Wood www.sidley.com Brussels - Belgium Square de Meuus 35 +32. 2. 504. 64. 12 Outline: 1. 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. » [...]... 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 of Ministers 3 3 Who initiates an antidumping investigation? EC producers; Must represent 25% of the EC production; Output of the companies in favour of the complaint... of the Member States (collaborators) ; Representatives of the Member States in the Anti-Dumping Advisory Committee; Speek to influent members of the political world in the member states; 4 6 Mobilize your users Act together! 4 8 Results Less harmfull anti-dumping duty; Undertaking and no anti-dumping duty; The Council of Ministers rejects the Commission’s proposal to impose an antidumping duty; The. .. output of the companies expressly opposed to the complaint 3 4 Procedure Complaint; Investigation: Export price; Domestic price (sample); Injury in the EC; Causal link; Interest of the EC; Proposal by the Commission to the Council of Ministers; Council of Ministers votes (decides): anti-dumping duty for the next five years 3 5 Special situation of Viet Nam: not a market economy Like China; For the comparison... price/domestic price: the Commission does not use the domestic prices in Viet Nam; But the domestic prices in a « comparable » market economy country; example: Thailand Consequence: the prices of the (Thai) market are higher > higher dumping margin; > higher anti-dumping duty 4 What can be done to limit the damages caused by an antidumping duty? 4 1 Prevention Monitor your prices 4 2 Cooperate in the investigation... 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 3° causal link industry is evidenced; 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... the investigation Answer the questionnaire; Confidentiality of sensitive information; An individual more favourable anti-dumping duty will be applied; 4 3 Ask the market economy status The domestic prices in VN will be used for the comparison; Conditions; 4 4 Submit your arguments to the Commission 4 5 Hearing 4 5 Political action Involved companies must cooperate; Meet the decision makers: Ministers.. .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 2.5 Do the WTO agreements... Less harmfull anti-dumping duty; Undertaking and no anti-dumping duty; The Council of Ministers rejects the Commission’s proposal to impose an antidumping duty; The Commission terminates the investigation Conclusion: There is no fatality! It is possible to avoid harm or to limit it Sidley, Austin, Brown & Wood www.sidley.com Brussels - Belgium Square de Meuus 35 +32 2 504 64 12 . TRADING WITH THE EC: LEGAL ASPECTS GOARNISSON Olivier Sidley, Austin, Brown & Wood www.sidley.com Brussels - Belgium Square de Meuus 35 +32. 2. 504. 64. 12 Outline: 1. The European. 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. 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

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