Communication from the Commission to the Council and the European Parliament on modernisation of trade defence instruments. Adapting trade defence instruments to the current needs of the European economy

The European Union is a world leading trading power and greatly benefits from free trade and open markets globally. In some instances, however, unfair practices by certain trading partners and third country exporters can be prejudicial to industries based in the EU. Trade defence instruments (TDI) are for that reason an important tool in the broader EU trade policy. They are often the only means that companies can invoke to react to unfair international trading practices. At the same time, the application of trade defence instruments can have an impact on users and consumers.

The EU applies very high standards in the administration of these instruments that have been enacted in 1995, often higher than those required by the World Trade Organisation (WTO) and as applied by many other users. However, the economic environment changes continuously and there is a need to periodically consider whether these changes require some adjustment to the TDI.

The rules of the EU's TDI have remained largely unchanged for more than 15 years. The last substantive revision of the EU's TDI took place in 1995 in order to implement the conclusions of the Uruguay round of multilateral trade negotiations. Since then, the only significant legislative change was that adopted in 2004 when the decision making process in the Council was changed (simple majority to reject a Commission proposal instead of simple majority in favour).

In 2006/2007, a reform exercise was launched and showed that there was a wide divergence of views on the topic. Subsequently, Commissioner De Gucht indicated during his hearing before the INTA Committee of the European Parliament in January 2010, that he considered that the TDIs should be reviewed after the conclusion of the Doha Trade negotiations that are conducted under the auspices of the WTO. These talks have stalled.

Against this backdrop, the Commission has decided to revisit the functioning of the EU's TDI with a view to updating them, but also bearing in mind that the multilateral WTO framework will not change in the foreseeable future. This Communication sets out the proposals and changes that the Commission puts forward in order to modernise the instruments in line with the Treaty objective to contribute to free and fair trade.

See also:
- Proposal for a Regulation of the European Parliament and of the Council amending Council Regulation (EC) No 1225/2009 on protection against dumped imports from countries not members of the European Community and Council Regulation (EC) No 597/2009 on protection against subsidised imports from countries not members of the European Community

ESO: Background information: Commission proposes to modernise the EU's trade defence instruments http://www.europeansources.info/showDoc?ID=1178544

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