Al Armouti Law Firm Al Armouti Law Firm +962 6 4620603 info@armouti.com
Trade Remedies

Trade Remedies

 

 

Anti-Dumping | Safeguards | Anti-Subsidies

 

AL Armouti lawyers and consultants provide legal counseling and legal representation services in Anti-Dumping, Anti-Subsidies and Safeguards proceedings. We are the leading law firm in the Arab world in this area of law as we were part of the vast majority of cases that took place in Egypt and Jordan;  the most active countries in investigating petitions filed against imports.

 

Our advisory and representation services include:

  • Drafting and submission of trade remedy petitions.

  • Completion of investigation questionnaires.

  • Lobbying.

  • Drafting and filing of injury submissions and comments.

  • The appeal of final determinations to competent courts.

  • Analysis of import data.

  • Injury and causality analysis.

  • Dumping analysis.

  • Market research.

  • Product technical analysis.

 

 

General Information

 

Trade remedies are measures designed by law to counteract imports that cause injury to domestic industries producing like products.

 

There are three types of trade remedy mechanisms similarly available under Egyptian law, Jordanian law, GCC law, and UAE law:

 

Anti-Dumping

 

Dumping occurs when an exporter, whether supplier or manufacturer sells their product in the export market at a value below than its normal value in the country of origin (home market).

 

Any domestic industry which believes it has been injured or threatened to be injured by the sale of like imports in its local market at dumped prices may file an Anti-Dumping petition with the competent authority ( usually a governmental quasi-judicial entity) provided that their allegations in the petition must be supported with evidence proving the existence of the following conditions: 1) that the local industry, as a whole or the major proportion of it, has been materially injured or threatened to be injured, 2) that the imported product is increasing into the market of the importing country and sold at dumped prices in the local market, 3) that there is a causal link between the increase of dumped imports and the material injury of the local industry or threat thereof.

 

The investigation should be finalized in a period not exceeding 12 months and could be extended in exceptional circumstances to an additional 6 months. Despite the fact that the period of the investigation is relatively lengthy, the law permits the imposition of provisional measures within two months from initiating the investigation.

 

The investigation process should avail the opportunity to all interested parties (usually the importers, exporters, and the exporting governments) to participate in the investigation and to provide counter-arguments and evidence against the petition.

 

All intervals of the investigation process and its deadlines are usually set in the initiation of investigation announcement including the description of the product, the timeframe to request participation in the investigation; the timeline to submit questionnaires; and the timeline for providing written submissions.

 

If the investigation authority determines at the end of the investigation that the conditions for applying Anti-Dumping measures against imports are met, a final Anti-Dumping measure will be implemented (increasing tariff rates). The amount of the measure is based on the dumping margin, which is the difference between the export price and the normal value of the imported product.


 

Safeguards

 

The Increase of a particular imported product into the market is considered by law a harmful practice that may cause injury or threat thereof to local industries producing the like product. Such increase can be counteracted by imposing a safeguards measure (additional customs tariffs and/or quotas)  on the imported product from all sources to limit its surge into the importing market; only upon conducting an investigation where all interested parties have ample opportunity to present their arguments and evidence.

 

Any domestic industry which believes that it has been injured or threatened to be injured by the increase of imports of like product from all sources may file a safeguards petition with the competent authority ( usually a governmental quasi-judicial entity) provided that their allegations in the petition must be supported with evidence proving the existence of the following conditions: 1) there is an increase in imported like product whether in absolute or relative terms 2) that the local industry, as a whole or the major proportion of it, has been seriously injured or threatened to be injured 3) that there exists a causal link between the increase of imports and the serious injury of the local industry or threat thereof.

 

The investigation should be finalized in a period not exceeding 12 months and could be extended in exceptional circumstances to an additional 6 months. The law permits the imposition of provisional safeguards measures within two months from initiating the investigation. ( Less in Jordan and Egypt).

 

The investigation process should avail the opportunity to all interested parties (usually the importers, exporters, and the exporting governments) to participate in the investigation and to provide counter-arguments and evidence against the petition.

 

All intervals of the investigation process and its deadlines are usually set in the initiation of investigation announcement including the description of the product, the timeline to request participation in the investigation; the timeline to submit questionnaires; and the timeline for providing written submissions.

 

If the investigation authority determines at the end of the investigation that the conditions for applying safeguards measures against imports are met, a final safeguards measure will be implemented (in the form of increasing tariff rates or quotas or both).

 

 

Anti-Subsidies (Countervailing Measures)

 

Governments subsidize their local exporting industries by providing financial assistance for the production, manufacture, or export of goods. Subsidies usually can take many forms, such as direct cash payments, tax credits, and loans. This support, however, is prohibited under the WTO as it negatively affects the competitive capabilities of local industries producing a similar product in the local market.

 

Any domestic industry which believes that it has been injured or threatened to be injured by the sale of subsidized like imports in its local market may file an Anti-Subsidies petition with the competent authority ( usually a governmental quasi-judicial entity) provided that their allegations in the petition must be supported with evidence proving the existence of the following conditions: 1) that the local industry, as a whole or the major proportion of it, has been materially injured or threatened to be injured, 2) that the subsidized imported product is increasing into the market of the importing country 3) that there exists a causal link between the increase of subsidized imports and the material injury of the local industry or threat thereof.

 

All investigation procedures and requirements are identical to the Anti-Dumping investigation. The investigation should be finalized in a period not exceeding 12 months and could be extended in exceptional circumstances to an additional 6 months. The law permits the imposition of provisional anti-dumping measures within two months from initiating the investigation.

 

The investigation process should avail the opportunity to all interested parties (usually the importers, exporters, and the exporting governments) to participate in the investigation and to provide counter-arguments and evidence against the petition.

 

All intervals of the investigation process and its deadlines are usually set in the initiation of investigation announcement including the description of the product, the timeline to request participation in the investigation; the timeline to submit questionnaires; and the timeline for providing written submissions.

 

If the investigation authority determines at the end of the investigation that the conditions for applying Countervailing measures against imports are met, a final measure will be applied ( in the form of increasing tariff rates). The amount of the countervailing measure will be based on the amount of subsidy received by the imported product by the relevant exporting government.