Reform of the UK’s Trade Remedies Framework
Published 23 March 2023
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Who is likely to be affected
International and domestic participants in trade remedy investigations and reviews, including but not limited to individual consumers, manufacturers, importers, downstream users, trade organisations, trade unions and public bodies.
General description of the measure
The provisions make changes to the existing trade remedies legislation to allow for a greater flow of information between the Trade Remedies Authority (TRA) and the government and provide greater flexibility for the government when taking evidence-based decisions on trade remedy measures.
The provisions will:
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Require the TRA to notify the Secretary of State before initiating new investigations.
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Provide the Secretary of State with the power to request the TRA reassess a recommendation or decision to terminate an investigation where there is justification to do so, for example where there is new evidence which the TRA has not previously considered or to correct errors of fact.
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Give the Secretary of State the flexibility to apply a different remedy to that recommended by the TRA, where these is supporting evidence to do so, and that it is in the public interest.
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Give the power to the TRA to provide alternatives options within its recommendation to the Secretary of State, where justified.
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Make the TRA’s assessment of the economic interest test (EIT) advisory so that the Secretary of State will still be able to apply measures if it is in the public interest to do so, even if the TRA determines that the EIT is not met.
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Give the Secretary of State the power to revoke trade remedy measures without the need for a TRA recommendation if retaining a measure is no longer in the public interest. The Secretary of State may require the TRA to provide advice, support and assistance before deciding to revoke measures.
Policy objective
The provisions are required to ensure the UK has the necessary tools and flexibility to defend its interests from unfair trading practices and surges in imports.
These proposals strike a balance between benefitting from the TRA’s independent analytical function and giving Ministers greater flexibility in making decisions within the public interest, taking into account the needs of UK producers, importers, and consumers, within our international obligations.
Background to the measure
Trade remedies, also known as trade defence measures, are additional tariffs or quotas imposed to protect domestic industries.
The TRA is responsible for investigating whether new trade remedies are needed to prevent injury to UK industries caused by unfair trading practices and unforeseen surges in imports. They also are responsible for carrying out reviews of measures transitioned over from the EU. The Trade Remedies Authority’s functions include providing a recommendation to the Secretary of State on whether a measure should be introduced (for new investigations) or on whether a measure should be maintained, varied or revoked (for reviews).
In light of the reviews completed already, it has become clear that in some instances greater ministerial involvement is required, in particular where there may be wider factors that the TRA is not positioned or mandated to take account of. This measure will allow Ministers to exercise a greater degree of flexibility when making decisions on trade remedies cases in the public interest, while maintaining the independence of the Trade Remedies Authority as an investigatory body.
Plans to change the UK’s trade remedies framework were announced by the then Secretary of State for International Trade in June 2021. These provisions amend section 13 and Schedules 4 and 5 of the Taxation (Cross-border Trade) Act 2018 which outlines the UK’s trade remedies framework.
Detailed proposal
Operative date
The main amendments made by these provisions will be commenced in Autumn 2023. Regulation making powers will commence on Royal Assent and the secondary legislation will be made in due course.
Current law
Current law is included in Schedules 4 (dumping of goods or foreign subsidies causing injury to UK industry) and Schedules 5 (dumping of goods or foreign subsidies causing injury to UK industry) of the Taxation (Cross-border Trade) Act 2018.
Proposed revisions
Schedule 16 amends Schedule 4 (dumping of goods or foreign subsidies causing injury to UK industry) and Schedule 5 (increase in imports causing serious injury to UK producers) of the Taxation (Cross-border Trade) Act 2018 to make:
- provision requiring the TRA to give the Secretary of State notice at key points in dumping, subsidisation and safeguarding investigations
- provision enabling the TRA to provide options within its recommendation to the Secretary of State in relation to dumping, subsidisation and safeguarding investigations
- provision allowing the Secretary of State to apply an alternative remedy to that in the TRA’s recommendation, where these is supporting evidence to do so, and that it is in the public interest
- provision allowing the Secretary of State to ask for additional advice from, and act other than in accordance with a recommendation of, the TRA
- provision requiring the TRA to advise the Secretary of State on whether the economic interest test is met in relation to remedies that it recommends in dumping, subsidisation or safeguarding investigations, rather than limiting its power to make recommendations by reference to the test
- provision about reviews of the application of remedies in dumping, subsidisation and safeguarding case
Summary of impacts
Exchequer impact (£m)
| 2022 to 2023 | 2023 to 2024 | 2024 to 2025 | 2025 to 2026 | 2026 to 2027 | 2027 to 2028 |
|---|---|---|---|---|---|
| Negligible | Negligible | Negligible | Negligible | Negligible | Negligible |
This measure is expected to have negligible impact on the exchequer.
Economic impact
This measure is not expected to have any significant macroeconomic impact.
Impact on individuals, households and families
It is expected that for the most part, only the businesses involved in a trade remedies investigation will be affected by the measure. This change relates to the application or revocation of duties in specific circumstances and is therefore expected to have no (or negligible) direct impact on individuals or households.
The impact on individuals or households will be considered on a case-by-case basis during the investigation on any specific measure.
The measure is not expected to impact on family formation, stability or breakdown.
Equalities impacts
It is not anticipated that there will be impacts for those in groups sharing protected characteristics.
Impact on business including civil society organisations
This measure is expected to benefit UK producers by ensuring that the government has the right tools to defend its interests from unfair trading practices and unforeseen surges in imports, following completion of a trade remedies investigation by the TRA.
Operational impact (£m) (HMRC or other)
Given the measures may require slightly increased resourcing within the TRA, there is a limited potential operational impact. The potential cost will depend on the number of affected trade remedies measures and the number of businesses affected by each measure.
Other impacts
Other impacts have been considered and none have been identified.
Monitoring and evaluation
The measure will be kept under review through communication with affected groups.
Further advice
If you have any questions about this change, please contact the Trade Remedies Policy Team at the Department for Business and Trade via email: [email protected]