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We recently hosted the second instalment of our three-part series on trade remedies. This webinar explored strategies on how the UK industry may protect itself from subsidised imports entering the UK.

The webinar was hosted by Rian Geldenhuys who looks after the ½Û×ÓÊÓƵ International Trade content. Two expert panellists, Dr Bregt Natens, counsel in the International Commercial & Trade Practice Group at Baker McKenzie and Raheel Shahid, a solicitor with the UK’s Trade Remedies Authority provided key insights in obtaining protection from subsidised imports.

Dr. Natens shared his experience assisting industries in applying for protection against subsidised imports, while Mr. Shahid offered insights into the Trade Remedies Authority's considerations when receiving such applications. The webinar provided a comprehensive understanding of the strategies and processes involved in safeguarding UK industries from unfair trade practices.

You can  or read on for the key insights from the session.

Subsidies involves some investigation

Unlike in dumping where an applicant would somewhat easily be able to gather the required information to prove dumping, subsidies require further investigation. This is due to the fact that one needs to prove four elements to show that a subsidy does exist namely that:

• It is a financial contribution;
• By a government (or entity authorised by government);
• Which confer a benefit on the recipient; and
• Is specific.

To prove the existence of a subsidy, an applicant will have to carry out research on the legislation, regulation or policy authorizing the subsidy. This involves analysing media reports, company or industry specific press releases, and leveraging subsidy investigations conducted by other countries investigation authorities, which often serve as a crucial resource.

View international trade practice notes, precedents and news articles

Planning for protection is key

Proving the existence of a subsidy is one part of the requirements to obtain protection. The applicant must also demonstrate injury as a result of the subsidised imports. In this regard, it is crucial to plan ahead for when protection is required. Significant time can be saved by approaching the Trade Remedies Authority’s Pre-Application Office and clarifying necessary requirements for a successful application, as well as to obtaining indicative timeframes for final decision and interim. The planning phase should commence as soon as the applicant notices subsidised imports entering the UK, allowing sufficient planning for the impact of the subsidised imports until protection is obtained. Indicatively, it may be between 12 to 24 months from the date that an application is submitted to the date that protection is obtained. Interim protection may be granted earlier, typically within 6 months from the date of application.

Apply with a double-edged sword

Often when there are subsided imports, those imports are also dumped as a result of receiving the subsidy. Applicant should consider applying for protection from both dumping and subsidised imports simultaneously. If both applications succeed, the duty to offset the subsidy could be added on top of the duty to offset dumping.  This could result in protection that makes it unfeasible for exporters to export the dumped and/or subsidised imports, as anti-dumping duties alone typically average around 30%. This protection lasts for at least 5 years, as it is imposed for an initial 5 year period. After the 5 years, the investigating authority will determine if the protection should be maintained for further subsequent 5-year periods. This often happens and as an average protection is in place for about 12 years from the date of imposition.

Want to hear more from the speakers? to catch up and hear the full discussion.

View international trade practice notes, precedents and news articles