EU countries agree to reform trade defense instruments

European Union (EU) countries agreed on Tuesday to reform its current anti-dumping and anti-subsidies regulations which will allow the bloc to impose higher duties on imports.

The new regulations will enable higher duties to be imposed in cases where there are raw material distortions through the limited suspension of the so-called "lesser duty rule."

The raw materials in question, including energy should account for more than 27 percent of the cost of production and more than 7 percent individually.

Under the "lesser duty rule," import duties must not be higher than what is necessary to prevent injury for an EU industry.

Other changes include shortening the investigation period and allow investigations to be initiated without an official request from industry, when a threat of retaliation by third countries exists.

The agreement builds on the proposal presented by the European Commission in 2013 aiming to modernize the EU's trade defense instruments.

The agreement will need approval of the European Parliament. Endit