A promising step towards a more effective use of the European instrument against unfair subsidies?
25 April 2016
Newsletter | Brussels | International Trade and Regulation
A very recent Regulation published on 18 March 2016 might be interpreted as a new policy from the EU Commission in order to address, under the European anti-subsidy instrument, cases where trade distortions are exclusively or mainly the results of State interference.
In this particular case, the EU ductile iron pipe industry, severely impacted by unfair imports from India, requested the imposition of measures reflecting in particular the distorting effects of the high export tax applicable on iron ore, a raw material used in the manufacture of these pipes. The EU industry has provided evidence that this export tax provides access to this raw material at an artificially low price that is tantamount to a subsidy granted to the Indian ductile iron pipe producers. The Commission found during its anti-subsidy investigation that the Indian export tax on iron ore is a so-called “countervailable” subsidy within the meaning of the basic AS Regulation.
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