The Trade Remedies Authority (TRA) was established following the UK’s departure from the EU in 2020. It manages the UK trade remedy regime in line with the World Trade Organisation regulations. The TRA aims to examine and investigate allegations of anti-competitive and unfair international trade practices and recommend measures to the UK government to deal with measures which it determines are unfair. The measures recommended are primarily additional tariffs payable on specified imported goods.
The Trade Remedies Authority conducts investigations into dumping and subsidy. The TRA also carried out safeguard investigations, reviews of EU trade remedy measures and reviews connected with existing UK measures.
What is a subsidy?
A subsidy is a financial contribution made by (or on behalf of) a government or a public body that gives the recipient (usually an industry or business which is manufacturing goods) an advantage against its competition. A subsidy can take the form of a loan, grant or price support.
What is dumping?
Dumping is where products are imported into a foreign country at less than the price of that product is sold for in the market of the exporting country.
This often involves constructing a price for the exporting country (known as the “normal value”) to enable an appropriate price comparison to be undertaken.
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Trade Remedies Authority Investigations
Following its departure from the EU, the UK has implemented an independent trade remedies system. This system involves the development of a new domestic legal framework and the formation of the TRA. UK producers and industries have the capability to request Trade Remedies Authority investigations into claims of dumping, countervailable subsidies, or unforeseen surges in imports into the UK.
What are Trade Remedies Authority investigations?
The TRA was established through the Trade Act 2021 which arises following Brexit. The TRA is governed by governed by a range of domestic and international laws, the most significant are the Taxation (Cross-Border Trade) Act 2018 and Trade Remedies (Dumping and Subsidisation) (EU Exit) Regulations 2019. The TRA was established in June 2021 and there is therefore little prior information relating to the decisions by the TRA on cases relating to Anti-Dumping and/or Anti-Subsidy.
The TRA will consider and investigate allegations of dumping or subsidy raised by application from UK Industry or the Secretary of State. The purpose of having trade regulation is to prevent the negative impact on UK industry of foreign imports causing a price to be so low that they cause the UK economic harm. The TRA undertakes investigations into imports that they believe may be unfair, following which, they may recommend measures which they consider will remedy any damages or injury that may be caused to the UK Industry. It typically takes 11-13 months for the TRA to carry out its investigation and make a recommendation. The TRA will consider whether tariffs can counter anti-competitive trade practices and if so propose the imposition of a remedy which it considers to be in the wider economic interest of the UK.
Making an application to the Trade Remedies Authority
If you are a UK producer and you believe that dumped or subsidised imports or a sudden increase of imports are causing injury to your industry, you can apply to the Trade Remedies Authority for a trade remedies investigation. They will assess your application and decide whether to initiate an investigation into the imports in question.
It is also possible to apply for a review of an existing anti-dumping, countervailing or safeguard measure if there is already a tariff in place.
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The Trade Remedies Authority Investigation Process
Once the Trade Remedies Authority receives an application from a UK industry and decides that it warrants an investigation, they will then initiate a dumping or subsidy investigation.
During each investigation the TRA completes a series of tasks and activities, which may include:
- Pre- and post-initiation notifications
- Registration
- Sampling and limited examination
- Questionnaires and information gathering
- Verification
- Meetings and hearings
- Assessments and calculations
- Defining a measure
- Economic interest test
- Determinations and recommendations
How long the investigation will take is entirely case dependent, but the TRA generally expects its investigations to last around 11-13 months. Once the TRA has assessed whether measures are needed and whether these are in the economic interest of the UK, before publishing a final determination, they will publish a Statement of Essential Facts (SEF). The SEF outlines the facts which form the basis of the TRA’s proposed decision on whether they intend to recommend any definitive measures. Relevant parties have the chance to provide their comments and submissions in response to the SEF and the TRA will consider these before they make their final determination. The final determination will set out the TRA’s final recommendation of measures to the Secretary of State who then determines whether to impose measures recommended.
Further information in relation to the TRA investigation process can be found on the Gov website here: The TRA’s investigation process - GOV.UK
How can we help?
We are one of the few UK firms with live experience in dealing with Trade Remedies Authority matters, TRA investigations in the UK are still extremely rare. Since the legislation came into force, only a handful of cases have been pursued; we are actively involved in one of those cases. We can assist you whether you are responding to an investigation as an interested party or are wishing to instigate an investigation within your industry.
We can guide you through each step of the investigation, offering our expertise and knowledge in order to help your business secure the best outcome.
