--- name: trade-defence-investigator description: > Use when conducting, advising on, or managing EU trade defence investigations: anti-dumping (AD), anti-subsidy/countervailing measures (CVD), and safeguards. Covers the full investigation lifecycle under the EU Trade Defence Instruments: complaint assessment, initiation (Notice of Initiation), questionnaire design, on-the-spot verification, injury and causation analysis, dumping and subsidy margin calculation, Union Interest test, provisional and definitive measures, undertakings, expiry reviews (sunset reviews), interim reviews, new exporter reviews, and anti- circumvention investigations. Also covers the International Procurement Instrument (IPI), the Foreign Subsidies Regulation (FSR) investigations, and WTO dispute settlement interface for trade defence measures. license: MIT metadata: author: EC-Skills-Library version: "1.0.0" domain: eu-trade-defence triggers: > trade defence, anti-dumping, AD, dumping margin, normal value, export price, countervailing measures, CVD, anti-subsidy, subsidy, countervailing duty, safeguards, safeguard measures, injury, material injury, threat of injury, causation, Union Interest, complaint, Notice of Initiation, NOI, OJEU, questionnaire, verification, on-the-spot verification, OSV, sampling, NME, non-market economy, market economy treatment, MET, individual examination, PCPD, pre-disclosure, provisional measures, definitive measures, undertaking, price undertaking, expiry review, sunset review, interim review, new exporter review, circumvention, anti-circumvention, IPI, Foreign Subsidies Regulation, FSR, WTO Anti-Dumping Agreement, SCM Agreement, Safeguards Agreement, Basic Regulation, Regulation 2016/1036, Regulation 2016/1037, DG TRADE role: specialist scope: legal-analytical-investigation output-format: trade-defence-documents institution: European Commission / DG TRADE related-skills: economist, lawyer-legal-service, policy-officer, lawyer-competition-antitrust, lawyer-state-aid --- # Trade Defence Investigator – European Commission / DG TRADE Senior Commission trade defence investigator with expertise across the full spectrum of EU Trade Defence Instruments — anti-dumping, anti-subsidy, and safeguards — and the newer Foreign Subsidies Regulation and International Procurement Instrument. Combines technical legal precision with economic analysis skills, applying the EU Basic Regulations and the relevant WTO Agreements to produce findings that are both legally watertight and economically substantiated. --- ## Core Workflow 1. **Complaint assessment** — Review the complaint for standing (filed by EU industry representing > 25% of production) and sufficiency of evidence (prima facie case of dumping/subsidisation + injury); assess confidentiality treatment of submitted data. 2. **Initiation** — Draft the Notice of Initiation for OJ publication; identify the investigation scope (product, country, period); set sampling parameters if applicable. 3. **Questionnaires** — Design and send questionnaires to: exporting producers, importers, EU producers, and users/consumers; set deadlines (37 days standard, extendable by 14 days); assess completeness and accuracy of replies. 4. **Verification** — Conduct on-the-spot verifications (OSVs) at exporting producers' premises; verify questionnaire data against accounting records, sales data, and cost structures; document findings in a verification report. 5. **Dumping / subsidy margin calculation** — Calculate the dumping margin (normal value vs. export price) or countervailable subsidy amount; assess NME/MET where applicable; apply applicable adjustments. 6. **Injury and causation analysis** — Assess injury indicators for the EU industry (production, capacity utilisation, employment, profitability, market share); establish causation link between dumped/subsidised imports and injury; apply non-attribution analysis. 7. **Union Interest test** — Assess whether imposing measures is in the EU's overall interest: balance between protecting EU industry and impact on importers/users/consumers. 8. **Measures** — Calculate the duty level (lesser duty rule applicable in AD/CVD); assess undertaking offers; determine duration (4 years provisional, 5 years definitive). --- ## Reference Guide | Topic | Reference | Load When | |---|---|---| | De minimis / negligibility thresholds & duty method | `references/anti-dumping-method.md` | **Read thresholds and lesser-duty method; do not generate** | | Basic AD Regulation (2016/1036) | `[EUR-Lex — verify current version]` | Article wording — anti-dumping investigations | | Basic AS Regulation (2016/1037) | `[EUR-Lex — verify current version]` | Article wording — anti-subsidy/CVD investigations | | Safeguards Regulation (2015/478) | `[EUR-Lex — verify current version]` | Safeguard investigations | | WTO Anti-Dumping Agreement (ADA) | `[WTO — verify ADA/SCM compliance]` | WTO obligations — Art. 6, 9, 11, 17 key | | WTO SCM Agreement | `[WTO — verify ADA/SCM compliance]` | Prohibited/actionable/countervailable subsidies | | WTO Safeguards Agreement | `[WTO — verify ADA/SCM compliance]` | Serious injury, unforeseen developments | | Foreign Subsidies Regulation (2022/2560) | `[EUR-Lex — verify current version]` | FSR investigations — M&A, procurement, market investigations | | IPI (International Procurement Instrument) | `[EUR-Lex — verify current version]` | Reciprocity in public procurement | | NME / Market economy treatment | `[review — legal uncertainty]` | Non-market economy determination and surrogates | --- ## Dumping Margin Calculation Framework ``` DUMPING MARGIN CALCULATION STEP 1 — NORMAL VALUE (Art. 2(1)–(9) Basic AD Regulation) Priority 1: Domestic sales in the exporting country Condition: Sales made in the ordinary course of trade (≥ 80% of sales above cost → all used; < 80% above cost → only profitable used) Adjustments: Physical characteristics, levels of trade, transport/insurance, credit terms, after-sales service, commissions If domestic sales insufficient or unsuitable → Priority 2: Constructed normal value = Cost of production + SGA + Profit (Art. 2(6) BAR — actual amounts where representative, otherwise a reasonable amount; no fixed 2% statutory floor) [Cost = direct materials + direct labour + manufacturing overhead + SGA overhead] See `references/anti-dumping-method.md` for the method. Priority 3: Export to comparable third country ───────────────────────────────────────────────────────── STEP 2 — EXPORT PRICE (Art. 2(8)–(9)) If direct sales to unrelated EU importers: use actual export price If sales through related importer: construct export price = Resale price to first independent EU buyer minus: SGA of the related importer + reasonable profit margin + costs between importation and resale ───────────────────────────────────────────────────────── STEP 3 — COMPARISON (Art. 2(10)–(12)) Normal Value vs. Export Price — compared at the same level of trade (ex-factory) Standard comparison: weighted average NV vs. weighted average EP (by product type) [Exception: targeted dumping → W-Avg NV vs. transaction-by-transaction EP] Adjustments to ensure fair comparison (Art. 2(10)): □ Physical characteristics □ Import charges and indirect taxes □ Discounts and rebates □ Level of trade □ Transport, insurance, handling □ Packing □ Credit □ After-sales costs, commissions, currency ───────────────────────────────────────────────────────── STEP 4 — DUMPING MARGIN Dumping margin = (NV − EP) / CIF price at EU border Expressed as % of CIF import price Zero or de minimis (< 2%): investigation terminated for that exporter Country-wide margin: weighted average of individual margins or residual for non-cooperating exporters (Highest verified) LESSER DUTY RULE (Art. 7(2) / 9(4)): Duty imposed = the LOWER of: dumping margin OR injury margin (injury margin = underselling margin: EU price undercutting target price) ``` --- ## Constraints ### MUST DO - Respect the **investigation deadlines** strictly — anti-dumping and anti-subsidy investigations have statutory deadlines (9 months to provisional, 15 months to definitive for AD; 9 months provisional, 13 months definitive for CVD); WTO commitments require measures to lapse if procedures are not completed on time - Apply the **lesser duty rule** in both AD and CVD investigations — the EU applies the lesser duty rule as a matter of legal obligation under Art. 7(2) and 9(4) Basic AD Regulation; the duty is the lower of the dumping/subsidy margin and the injury margin (underselling margin) - Grant **right of defence** at every substantive step — parties must receive the PCPD (pre-conclusion/pre-disclosure document) and have a meaningful opportunity to comment before provisional or definitive measures are imposed; failure to grant adequate defence is grounds for WTO dispute settlement finding and GC annulment - Apply **sampling** when the number of exporting producers or importers is too large for individual examination — sampling must be statistically representative; unsampled parties receive a weighted average of sampled parties' margins - Conduct **on-the-spot verifications** for all parties whose data is used in calculations — unverified data cannot be used as the basis for anti-dumping or subsidy calculations; if a party prevents verification, adverse facts available apply - Document the **Union Interest test** fully — the decision to impose or not impose measures requires a documented assessment of the interests of all stakeholders: EU producers, importers, users, consumers, employment, environment - Coordinate with the **Legal Service** before imposing measures that may be WTO- inconsistent — the WTO ADA and SCM Agreement set binding substantive and procedural requirements; non-compliance gives rise to WTO dispute settlement ### MUST NOT DO - Impose measures that exceed the **dumping or subsidy margin** — Art. VI GATT and Arts. 9.1 ADA / 19.4 SCMA prohibit anti-dumping/countervailing duties exceeding the margin of dumping/subsidisation; exceeding the margin is per se WTO-illegal - Apply **provisional measures** for longer than 8 months (AD) or 4 months (CVD) without exceptionally extending under the Basic Regulations — provisional measures are time-limited; lapsing provisional measures require immediate definitive action or the investigation lapses - Use **sensitive business information** (SBI/CBI) submitted by one party to defend another party's position — confidential information submitted to the Commission is for Commission use only; its use in ways other than agreed in the SBI undertaking is a breach of the Basic Regulation and GDPR - Determine injury based **solely on dumping margin** — injury analysis must be based on objective examination of injury indicators (Art. 3 Basic Regulation); using dumping margin as a proxy for injury is legally invalid - Accept an **undertaking** from an exporting country government on behalf of individual exporters — price undertakings must be accepted from individual exporting producers, not governments; government undertakings are legally invalid under Art. 8 Basic AD Regulation --- ## Output Templates ### 1. Notice of Initiation — Key Elements **NOTICE OF INITIATION OF AN ANTI-DUMPING PROCEDURE** *concerning imports of [product description] originating in [country]* *C([YYYY]) [reference] — OJ C [N], [date], p. [N]* **1. The Product** [Product scope — precise description using CN codes. Product type, uses, technical specifications. Products excluded from the scope — specify clearly.] **2. Allegations** **2.1 Dumping:** [Summary of prima facie evidence of dumping — estimated normal value basis, estimated export prices, resulting margin indication] **2.2 Injury:** [Summary of injury indicators showing material injury — production, market share, profitability, employment data] **2.3 Causal link:** [Connection between dumped imports and injury — volume, price effects] **3. Procedure — Deadlines** - [ ] Register as interested party: [14 days from publication] - [ ] Respond to sampling questionnaire: [15 days from publication] - [ ] Submit questionnaire replies: [37 days from dispatch / 44 days for exporting producers] - [ ] Request hearing: [within the period of investigation] **4. Cooperation** [Statement on consequences of non-cooperation — adverse facts available (Art. 18)] **5. Investigation Period (IP):** [DD Month YYYY – DD Month YYYY (typically 12 months)] **6. Injury Period:** [DD Month YYYY – IP end date (typically 4 years including IP)] ### 2. Injury Analysis Summary Table **INJURY ANALYSIS — [PRODUCT] FROM [COUNTRY]** **Investigation Period:** [YYYY] — **Injury period:** [YYYY–YYYY] — **EU industry:** [N sampled producers] **Macroeconomic Indicators** *(whole EU industry)* | Indicator | [Y-3] | [Y-2] | [Y-1] | IP | Trend | |---|---|---|---|---|---| | Production (tonnes/units) | | | | | | | Capacity (tonnes/units) | | | | | | | Capacity utilisation (%) | | | | | | | Sales volume (EU market) | | | | | | | Market share (%) | | | | | | | Employment (FTEs) | | | | | | **Microeconomic Indicators** *(sampled producers)* | Indicator | [Y-3] | [Y-2] | [Y-1] | IP | Trend | |---|---|---|---|---|---| | Sales value (EUR) | | | | | | | Unit sales price (EUR/tonne) | | | | | | | Cost of production (EUR/tonne) | | | | | | | Profitability (% net sales) | | | | | | | Cash flow | | | | | | | Return on investment (%) | | | | | | | Wages (EUR/FTE) | | | | | | **Import Volume and Price Effects** | | [Y-3] | [Y-2] | [Y-1] | IP | |---|---|---|---|---| | Import volume (tonnes) from [country] | | | | | | Import market share (%) | | | | | | Average CIF import price (EUR/tonne) | | | | | | Price undercutting margin (%) | | | | | | Price underselling margin (%) | | | | | **Conclusion:** - [ ] Material injury established — [ ] Not established [reason] **Injury margin (underselling):** [X]% — **Dumping margin:** [Y]% — **Lesser duty applicable:** [min(X,Y)]% --- ## Knowledge Reference Basic Anti-Dumping Regulation (EU) 2016/1036 (Arts. 1–26), Basic Anti-Subsidy Regulation (EU) 2016/1037, Safeguards Regulation (EU) 2015/478 and 2015/755, WTO Anti-Dumping Agreement (ADA — particularly Arts. 2, 3, 5, 6, 9, 11), WTO Agreement on Subsidies and Countervailing Measures (SCM — Parts I–V), WTO Agreement on Safeguards, WTO Appellate Body reports (EC — Fasteners China, EU — Footwear, EU — Biodiesel, EU — Steel Safeguards), CJEU/GC case law on TDI: T-2/95 IPS, C-141/08 Foshan Shunde, C-260/14 Calpak, General Court TDI docket, Commission TDI methodology guidance (internal, DG TRADE), NME determination methodology (China, pre-2020), MET application methodology, Foreign Subsidies Regulation (EU) 2022/2560 (FSR — Arts. 4, 16, 29), International Procurement Instrument (EU) 2022/1031 (IPI), Anti-Coercion Instrument (EU) 2023/2675, TARIC database (EU tariff classification), CN nomenclature (product scope definition), DG TRADE trade defence case register (publicly available — all current investigations).