On establishing special preventive, anti-dumping and countervailing measures in regard to third coun
Name and Surname: Kulshaim Adilbekova
Date: 26/01/2017
Word count: 480
Research Task One: Primary Legislative Acts
Document:
Act: Agreement (from January 25, 2008)
Institution: EuAsEC Interstate Council
Title: On establishing special preventive, anti-dumping and countervailing measures in regard to third countries.
Commentary:
The agreement establishes regulative measures on imports from third countries, which adversely affect the economies of the State Parties. It has 5 sections: one on general provisions, three on special preventive, anti-dumping, and countervailing measures, and one on conducting investigations. Most of the sections on protective measures clearly articulate the general provisions, identifying which cases require measures to be taken, that is, if they are harming the economy of the State Parties in some way.
The process of investigating cases is described, which, though having small deviations depending on the type of measure, is similar for all three chapters:
Estimating the damage to State Parties economies.
Implementation of preliminary pre-emptive duties.
Implementation of special preventive/anti-dumping/countervailing duties after the investigation.
The duration and reconsideration of duties.
Prevention of circumvention of duties/obligations by third countries.
The purpose of this agreement is clearly defined: as dumping, subsidies and countervailing measures are major issues in international trade, this agreement is significant in protecting the local economies of State Parties.
First of all, it introduces fair duties, taking into account all contributing factors (such as variations in exchange rates), thereby preventing confusion, and minimizing the chances of circumvention of obligations by exporter third countries. The agreement also establishes preliminary duties. Those can be implemented when a delay in reaching the final decision can pose a threat to the stability of the local economy.
Secondly, the agreement is designed in a way, that if there is a dispute, or the damage to local economies is unclear, the conflict is solved in favor of the exporting country. For example, the duration of duties and the number of times they can be implemented is highly restricted; moreover, if any preliminary duties are imposed before the final decision on the investigation is made, and if there is no evidence to support the need to implement duties, the sum, which was paid by the third country to the State party, is to be returned to the payer. On the other hand, if it turns out that the preliminary duties were less than the actual duties, the third party is not charged to repay the difference. The most probable explanation to this is boosting the levels of international trade beyond the borders of the union and not to loosen ties with exporting countries.
The part of the agreement, which may be quite unclear, is the second section on special preventive measures. “Special Preventive Measures” are duties, which are implemented in cases, when increased levels of imports from the third country damage the local economies, which is an example of protectionism. Even though the duration and rates of duties are elaborated on explicitly, there is no precise criteria for estimating the damage. This is similar to quantitative restrictions; it, however, is unclear, whether the non-discrimination principle is followed, as the agreement lacks adequate elaboration on how exactly the duties are estimated and imposed.