Changes proposed to UK’s trade remedies system

Changes to the current regime will be proposed in the Finance Bill which will be introduced this month.

The Secretary of State for the Department for Business and Trade has today published a statement setting out the proposed legislative changes to the UK’s trade remedies regime.

The UK’s trade remedies regime

The UK Government has responsibility for setting trade remedies policy, within the international rules established by the World Trade Organization. The UK Trade Remedies Authority’s role is to operate the UK’s trade remedies regime within this framework. The proposed changes would give the Government additional powers to decide the outcome of trade remedies investigations while maintaining the TRA’s independent investigatory and recommendation functions.

The changes proposed by the Government include:

• TRA taking on responsibility for investigating bilateral safeguard cases as part of free trade agreements;
• Ministerial powers to request the TRA provides alternative options to its main recommendations, as required;
• Ministerial powers to override the TRA’s Economic Interest Test on public interest grounds;
• powers for the Government to ask the TRA to re-evaluate a recommendation; and
• powers for the Government to take a different decision to that recommended by the TRA.

TRA Chair Simon Walker said:

I welcome the fact that this Government review has recognised the value the TRA holds as an independent body, providing impartial, evidence-led recommendations. Today’s announcement also extends the TRA’s remit to include bilateral safeguards cases under the UK’s growing number of free trade agreements. We look forward to working closely with the Department for Business and Trade to ensure our current and future users of trade remedies understand the changes so they can be implemented smoothly.

The Secretary of State for Business and Trade said:

Defending free and fair trade is one of my top priorities, and reforming the Trade Remedies Framework is a key way of ensuring we have the tools we need to do so. This decision will ensure that the UK takes full advantage of the flexibility that comes with being an independent trading nation.

Talking to industry

The TRA is working with the Department for Business and Trade (DBT) to translate the changes into legislation and guidance that will allow a smooth transition for users of UK trade remedies to a more complex investigatory regime. DBT and the TRA will be setting up joint round-tables for interested stakeholders to explain the proposed changes.

Background

• When the UK left the EU, the UK Government established its own trade remedies authority, the UK Trade Remedies Authority (TRA), to undertake work on trade remedies which was previously carried out by the EU.
• Since it was set up, the TRA has operated a trade remedies regime to investigate complaints of unfair import practices and sudden floods of imports. Once it has completed its investigations, the TRA may recommend measures to counter the imports and protect the UK manufacturing industry, in the form of tariffs on imports at the border.
• You can find out more about the TRA and its current active cases on its public file.