Dumping

Department for International Trade written question – answered on 10th July 2018.

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Photo of Simon Clarke Simon Clarke Conservative, Middlesbrough South and East Cleveland

To ask the Secretary of State for International Trade, what provision he plans to introduce within the UK’s independent trade remedies framework for the calculation of dumping margins in circumstances in which the standard methodology may not be appropriate.

Photo of George Hollingbery George Hollingbery Minister of State (International Trade)

We are committed to protecting UK industry where it is suffering injury as a result of dumped imports. Secondary legislation will introduce provisions to tackle those cases concerning countries where there are particular market situations. Those situations occur when it is not possible to use the domestic prices in the exporting country to calculate the dumping margin, because prices and input costs do not reflect competitive market conditions. In such cases the Trade Remedies Authority (TRA) will be able to use alternative methodologies. These alternative methodologies will include the use of export prices to an appropriate third country, provided they are representative, and will enable the TRA to construct the prices on the basis of cost of production, selling, general and admin costs and profit. Secondary legislation will also provide that the exporter’s cost data may be adjusted, where justified on a case by case basis, based on among other things prices from a representative country.

We will set out in secondary legislation examples of situations, such as where prices are artificially low, for example as a result of government intervention, where significant barter trade exists, or where non-commercial processing arrangements occur. Other economies, such as the EU and the US, have similar mechanisms in place to protect the domestic industry from unfair trade practices and the UK will be no different.

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