101 UK Brexit Notes

Connemara Programme October 16 2018 pg. 39 Business: Legal: Trade Remedies Purpose The purpose of this notice is to alert UK businesses to the government’s intention to establish an independent trade remedies system by the time the UK exits the EU which will be operated by the UK Trade Remedies Authority (TRA), a new arm’s length body to investigate complaints of unfair trading practices and unforeseen surges in imports, which cause injury to UK industry. Before March 2019 Trade remedies allow World Trade Organisation (WTO) members to operate a safety net and protect domestic industry from injury caused by unfair trading practices, such as dumped or subsidised imports, or from injury caused by unforeseen surges in imports. These usually take the form of additional duties on those imports. As members of the EU, we have supported UK industries to secure necessary protections through the EU trade remedies system. Currently, complaints of unfair trade practices or unforeseen surges in imports are investigated by the European Commission (DG Trade), and any trade remedy measures are applied at an EU-wide level, rather than just in the UK. Producers currently submit applications for investigations to the European Commission. Investigations are only undertaken if there is sufficient evidence of injury to EU producers. Specifically, applications need to show sufficient evidence that:  there are dumped or subsidised goods or an unforeseen surge in imports that is causing injury to a domestic industry  the WTO standing requirements in relation to import volumes and injury are satisfied  the complaint is made on behalf of EU industry, that is producers representing at least 25 per cent of total EU production of the particular goods are being affected. After March 2019 As we prepare to operate an independent trade policy outside the EU, we are creating a trade remedies system which meets the needs of the UK. We are also prioritising certainty and continuity for business by maintaining EU measures which matter to the UK. In a ‘no deal’ scenario, the TRA will be operational by the time the UK leaves the EU and UK business will need to approach the TRA instead of the European Commission, with complaints relating to trade remedies. We recognise the crucial role which UK manufacturers and producers play in our economy. We are committed to ensuring that UK industry has the protections it needs against unfair trading practices and unforeseen surges in imports which cause injury, but we will also ensure that the impact on consumers and end users is taken into account by applying proportionate measures. We are legislating for the full suite of tools permitted under the WTO in order to tackle injury to UK industry caused by these practices. The Trade Bill will establish the TRA as a new non-departmental public body, while the Taxation (Cross-border Trade) Bill sets out the trade remedies framework that the TRA will be responsible for delivering. Implications Transition of existing EU measures It is important that we provide certainty to UK businesses and avoid exposing them to injury from known cases of dumping or subsidy. In 2017, the government launched a call for evidence, asking UK industry which existing EU measures matter to the UK. Measures which meet specific criteria detailed in the call for evidence will be maintained once the UK is operating an independent trade remedies framework, and the remaining measures will be terminated. All maintained measures will be reviewed by the TRA and adjusted if necessary, to ensure they are suitable for the UK market. The government published the provisional findings of the call for evidence at the end of July. The government has invited any party with an interest t o review the provisional findings and provide any further relevant evidence which may affect the decisions. New complaints prior to EU exit The government will announce when the TRA is operational. At this point, UK industry should approach it in parallel to the EU Commission with all information and data it believes is relevant for either body to consider when opening a new investigation. New investigations Once the UK leaves the EU and is operating an independent trade remedies framework, UK businesses will be able to apply to the TRA directly if they believe they are being injured by the effects of unfair trade practices or surges in imports. Those making the application will need to demonstrate to the TRA that there is sufficient evidence of dumped goods, subsidised goods or an unforeseen surge of imports. They’ll also need to demonstrate that the WTO standing requirements in relation to import volumes and