EU trade defence instruments
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
Anti-dumping
- 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
Anti-subsidy
- 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 modernising its trade defence instruments for the first time since 1995. A new regulation is due to enter into force by June 2018. It will reform key areas such as:
- transparency and predictability
- investigations
- social and environmental standards
*This infographic was created before the UK's withdrawal from the European Union on 31 January 2020.