EU trade defence instruments
The EU supports free and fair trade.
Trade defence instruments:
- tackle unfair competition by foreign companies
- protect EU industry
Types of trade defence instruments
Dumping: manufacturers from a non-EU country sell goods in the EU below the sales price in their domestic market or below the cost of production
EU response: anti-dumping measures such as duties on imports of the product from the country in question
Subsidisation: a non-EU government provides financial assistance to companies to produce or export goods
EU response: duties on imports of the subsidised products as a countermeasure.
The EU is working on the first fundamental review of its trade defence instruments since 1995.