1. GATT AD Rules
1.1. General information
1.1.1. Article VI constitutes an exception - allows country to increase the customs tariff => deviating from the bound tariff rates for a given product from a given country (Article II 2 c GATT for tariff concession): Article I,II,III, XX, XXI (Explanation)
1.2. Ratio legis - Article VI GATT 1947/1994
1.2.1. GATT binds tariff rates for a given product from a given country (customs territory) with effect for all
1.2.2. Only few exceptions exist, and tariff reductions hardly leave any protection in form of tariffs
1.2.3. Price discrimintation can be challenged by competiton and/or unfair
1.3. Dumping - Article VI GATT 1947/1994. Under Article VI of GATT and ADA, MS can start an investigation and impose the AD measures only
1.3.1. (i) There is dumping
1.3.2. (ii) There is injury to domestic industry producing the like product
1.3.3. (iii) There is a causal link between the dumping and the injury
1.3.4. Only for EU: EU Interests (Each country will look at its own public interest)
2. Analysis requirements for "Dumping"
2.1. Legal basis
2.1.1. GATT AD Rules on prices
2.1.1.1. (a) is less than the comparable price, in the ordinatry course of trade, for the like prodcut when destined for consumption in the exporting country, or
2.1.1.2. (b) in the absence of such domestic price, is less than either
2.1.1.2.1. (i) the highest comparable price for the like product for export to any third country in the ordinary course of trade, or
2.1.1.2.2. (ii) the cost of production of the product in the country of origin plus a reasonable addition for selling cost and profit
2.1.2. Price discrimination/ differentiation (formalistic approach - did not look into the reason behind the difference of the price, but looks at the criteria for dumping and injury and link)
2.1.2.1. Same product, same production, different prices
2.2. Determine "dumping" The first step is to define if there is a price difference.
2.2.1. Define how does the product look like and how to compare? Define different type of "like products"; what criteria have to look for?
2.2.1.1. Product control number (Codify)
2.2.1.1.1. TARIC Code
2.2.1.2. Definiton of product in dumping is broad, not based on "substituable" as in competitive law.
2.2.1.2.1. Should be very detailed so as to follow calculation of price differences and later to permit administration of customs duties by customs officials.
2.2.2. We compare (1) Normal values, (2) Export price, (3) Comparision.
2.2.2.1. Normal value (Article 2 (1) to (7))
2.2.2.1.1. Price on the exporter's domestic market. If not possible, calculation based on prodeuction cost, selling, general and administrative costs and profit.
2.2.2.2. Export price (Article 2 (8) to (9))
2.2.2.2.1. Transaction price at which the exporting producer sells the product to an importer in the EU, if not approprate for purposes of comparision then construct the export price.
2.2.2.2.2. The landed cost is the total price of a product once it has arrived at the buyer’s doorstep. This includes:
2.2.2.3. Comparision (Article 2(10))
2.2.2.3.1. Fair comparision between the export price and the normal value
2.2.3. Note
2.2.3.1. There is a situation if there is no price or sale in the exporting country, we need to constructing the normal value (Áp đặt giá trị thông thường) = Cost of production in the origin country + reasonable amount for administrative, selling, general costs, profits
2.2.3.2. If there is the different between products (for example battery with different wolt). Then compare the difference of values (take into account when do the calculation) => the Aim is to come up with a precise figure of dumping margin.
3. Anti-Dumping EU rules
3.1. Legal source
3.1.1. Regulation (EU) 2016/1036 of the European Parliament and of the Council of 8 June 2016 on protection against dumped imports from countries not members of the European Union (codification) http://data.europa.eu/eli/reg/2016/1036/2020-08-11
3.1.2. Important provisions
3.1.2.1. Article 2 - Determination of dumping
3.1.2.2. Article 3 - Determination of injury
3.1.2.3. Article 7 - Provisional Measures
3.1.2.4. Article 9 - Termination without measures, imposition of definitive duties
3.1.2.5. Article 21 - Union interest
3.2. Practical issues
3.2.1. Definition of product
3.2.2. Product control number
3.2.3. Market dominent (more than 40%)
3.3. Turkey - Hot Roll Steel example
4. (1) EU and Trade (in goods and services)
4.1. What means EU Trade?
4.1.1. Internally
4.1.2. The four Freedoms
4.2. Externally
4.2.1. One common customs tariff since 1968
4.2.2. The customs tariff concerns goods
4.2.3. Other issues are non-tariff barriers (related to goods) and services
4.3. Example: India get a ban on exporting wheat, Indonesia on palm oil.
4.4. Historical views: 1920s - 30s,
5. (2) Trade liberalisation
5.1. Advatanges: Open up to trade has many benefits
5.1.1. help countries grow quicker
5.1.2. increase the living standard
5.1.3. reduce sense of isolation of developing worlds
5.1.4. give access to people in developing countries to reach wealthier life
5.2. Reasons for restrictions of trade
5.2.1. Protection of domestic industry and jobs from the import competition
5.2.2. Protect of infant industries
5.2.3. Generation of governement revenue
5.2.4. Ensuring self-sufficiency
5.2.5. Protection of ...
6. (3) Trade and customs
6.1. What means "customs"
6.1.1. The official department that administers and collects the duties levied by a government on imported goods.
6.2. "Customs territory"
6.2.1. Meaning: Geographic territory with uniform customs regulations and there are no internal customs or similar taxes within the territory.
6.3. "Customs duties?"
6.3.1. Customs Duty is a tax imposed on imports and exports of goods; The rates of customs duties are either specific or on ad valorem basis, that is, it is based on the value of goods.
6.3.1.1. Classification of goods - The Union Custom Codes for example.
6.4. How to implement trade measures
6.4.1. Similar to customs duties
6.5. Where to implement trade measures
6.5.1. At the border of the customs territory
6.6. What else to consider in trade?
6.6.1. Controls on illicit trade, e.g. arms, endangered species
6.6.2. Controls of safety, such as sanitary or other prodcut specific rules
6.7. EU framework
6.7.1. Freedom of goods: Article 29,30,31 - The Custom Union
7. (4) Trade instruments
7.1. Overview (1)
7.1.1. Multilateral framework
7.1.1.1. Dumping
7.1.1.1.1. Article VI GATT 1994
7.1.1.2. Subsidies
7.1.1.2.1. Article VI and XVI GATT 1994
7.1.1.3. Safeguards
7.1.1.3.1. Article XIX GATT
7.1.1.4. Plus specific rules - e.g. Rules on subsides for aircraft manufacturing.
7.1.2. European Union Framework
7.1.2.1. First EU anti-dumping regulation in 1968 when the EEC obtained exclusive trade powers and transtitional period for customs
7.1.2.2. To be applied for non-EU member countries (UK after Brexit)
7.1.2.3. See Articles 30 and 206 eq. TFEU
7.2. Overview (2)
7.2.1. Inwards and/or outwards looking
7.2.1.1. Inwards, meaning to protect the internal market
7.2.1.2. Outwards, opening outside markets
7.2.1.3. Tools can have effects both ways, e.g. challenge of subsidies in dispute settlement proceedings
7.2.2. Inwards looking
7.2.2.1. E.g. Trade defence measures to protect the industry in the internal market by means of additional customs duties
7.2.3. Outwards looking
7.2.3.1. E.g. dispute settlement cases
7.3. EU Trade instuments
7.3.1. Euroepan Union instruments
7.3.1.1. Dumping
7.3.1.2. Subsidies
7.3.1.3. Safeguards
7.3.1.4. Trade barrier instrument
7.3.1.5. Subsidies and unfair pricing practices in the supply of air servcies
7.3.1.6. Injurious pricing of ships
7.3.2. Policy making
7.3.2.1. Enforcing intellectual property rights
7.3.2.2. Developing an Anti-Coercion Instrument
7.3.2.3. Public procurement in third countries
7.3.2.4. Foreign Direct Investment screening framework for the EU countries
7.3.2.4.1. Balance of invest and do we want to have invest in one country and governance of another country? (The answe is no)
8. Multilateral framework
8.1. Historical views
8.1.1. GATT 1947 - Rules for trade in goods
8.1.1.1. Multilateral commitment to reduce trade barriers through rules
8.1.1.1.1. Original reason: Indirect consequence of economic crises
8.1.1.2. Doha Rounds
8.1.1.2.1. Progress is not in light
8.1.1.2.2. Tariff reduction for development disputed
8.1.1.2.3. Agriculture tariff reductions - disputed
8.1.1.2.4. Trade related IP issues - disputed
8.1.1.2.5. Competition rules - disputed
8.1.1.2.6. Increased tendancy for conlcusion of BIT but "extended" regionalism is not a solution
8.2. What is the basic rule
8.2.1. GATT 1994 to be read with GATT 1947
8.2.1.1. on Agriculture
8.2.1.2. on Sanitary and Phytosanitary measures
8.2.1.3. on Technical Barriers to Trade
8.2.1.4. Trade Related Investment Measures
8.2.1.5. Customs valuation
8.2.1.6. Preshipment inspection
8.2.1.7. Rules of origin
8.2.1.8. Import Licensing