S&Ds secure new anti-dumping rules to protect European industries and workers

male industry workers lining up for a job

The European Parliament will today vote on a new anti-dumping methodology. Under the leadership of the Socialists and Democrats, Parliament succeeded at an early stage in preventing the Commission from recognising China as a market economy. During the negotiations between member states, the Commission and the Parliament, the S&Ds successfully built a strong consensus for their position. Thanks to their constructive engagement with the other political groups, the S&Ds strengthened the ‘country-neutral’ proposal put forward by the Commission. The new anti-dumping calculation methodology will be able to capture market distortion linked to state intervention in third countries and help fight unfair trade practices, thus protecting European industries and workers.

S&D negotiator on a new anti-dumping methodology, Emmanuel Maurel, MEP, said:

“The Socialists and Democrats succeeded in turning the new anti-dumping methodology into a sharp weapon against unfair trade practices by third countries. Two years ago, we were the first to start the fight against the Commission’s intention to grant market economy status to China and the disastrous consequences that would follow in its wake, such as deindustrialisation and job losses. Our mobilisation forced the Commission to change its plans. The Commission ended up presenting a so-called ‘country-neutral’ regulation, but one that could have still deprived entire EU industrial sectors from the instruments they need to protect themselves against the consequences of Chinese dumping. From that moment on, we undertook a thorough work to reverse the logic of the proposal, which we finally managed to do at the benefit of our industries and workers.

 “We made sure that no extra burden of proof is imposed on our industries. We now have a clear list of what constitutes market distortions, like state presence in firms allowing for interference with costs and prices or discriminatory policies. For the first time, social and environmental standards are taken into account when assessing the existence of dumping; also Trade Unions and SMEs will be able to play a role in anti-dumping procedures. This is a promising first step that will hopefully pave the way for further strengthening of our trade defences.”

S&D spokesperson on trade, Alessia Mosca, MEP, added:

“With the new anti-dumping calculation methodology we are providing workers and companies with an effective defence against unfair trade practices. The protection of hundreds of thousands of European jobs starts at home. By choosing what can enter into the European market, which is still the largest worldwide market, we set our values. The new rules, which represent a victory for the S&D Group and the Parliament as a whole, are consistent with our progressive trade agenda. In our fight for a fair and open trade system, we are not asking for walls and protectionism. On the contrary, we are open for business, but in order to trade with us, our partners must meet our conditions starting from our commitments to a sustainable social model and environmental protection. This is what we will achieve today and we are very proud of it.”

Note for editors:

On 9 November 2016 the European Commission presented its proposal to reform the anti-dumping and anti-subsidy calculation system in view of the deadline set by China’s access protocol to the World Trade Organisation (WTO) for the recognition of market economy status. The new methodology for calculating dumping is based on rules established by the WTO anti-dumping agreement. As the Commission’s proposal is subject to the ordinary legislative procedure, the Council and the European Parliament needed to reach an agreement on a final text. The new anti-dumping methodology runs in parallel with a broader revision of the EU's trade defence instruments.