Corporate Strategy & Finance (Competition, Trade & EU Regulatory) - Review

    July 2009

    The EU's Court of First Instance clarifies interpretation of anti-dumping Regulation in important decisions on market economy status

    The European Court of First Instance (CFI), on judgment of 17 June 2009, annulled EU dumping duties against Zhejiang Xinan Chemical Industrial Group (Zhejiang XCIG), a Chinese herbicide exporter, concluding the Council had committed a manifest error of assessment in denying Zhejiang market economy status (MES). The decision brings an end to the 29.9% dumping duty on imports to the EU on one of the company's main products.

    This decision comes about shortly after the CFI confirmed that failure to comply with the threemonth time limit within which the Commission has to determine whether a producer meets the MES criteria may lead to the annulment of the regulation imposing anti-dumping duties.

    In this Trade Law Update, we summarise both cases and comment the important developments they introduced to EU case law concerning MES in anti-dumping investigations.

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