Source article by Jones Day 10.03.2017 via The International Law Office
The field of trade defence instruments (TDIs) is among the most active in international trade law and their use could further increase as a result of the current wave of protectionism.
TDIs are measures imposed by countries in order to protect their markets when harmed by certain trade practices by exporters (dumping) or other governments (subsidisation), or by an unforeseen, sharp and sudden increase in imports.
TDIs are among the main exceptions allowed by the World Trade Organisation (WTO) to the principles governing international trade.
These key principles include the prohibition on raising tariffs above a certain level and the obligation to apply tariffs equally to all trading partners.
As TDIs are exceptions to those principles, the imposition of TDIs is governed by strict rules imposed by the relevant WTO agreements.
In the European Union, which frequently makes use of these instruments, TDIs are based on the global framework set out by WTO law and on a number of additional conditions adopted at EU level.
However, the EU legal framework must comply with WTO law.
There are three different types of TDI:
- anti-dumping measures;
- countervailing (or anti-subsidy) measures; and
- safeguard measures.