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UK: ADD & CVD on optical fibre cable from China

Imposing ADD & CVD on optical fibre cable imports from China? Find out how the UK protects its growing industry against unfair trade practices.

The government has accepted the TRA's recommendations to impose anti-dumping and countervailing charges on optical fibre cable imports from China.

In response to the TRA's recommendations on dumping and subsidisation, the government put new laws into place on October 23, 2023, to protect the UK's growing optical fibre cable industry against unfair trade practises by China. An estimated £88 million is added to the UK economy by this growing industry.

In 2021, the UK sold around 5.7 million fibre kilometres of optical fibre cable, which included sales from both imports and UK manufacturers. Businesses and homes may access the internet with optical fibre cable. The TRA investigated whether imports of these items were provided at discriminatory prices due to subsidies in two different cases (AD0021 and AS0022) and if they were dumped in the UK at prices lower than what they would sell for in their home country.

The UK market for optical fibre cable is expected to grow over the next five years as a result of government investments in broadband infrastructure, such as Project Gigabit, a £5 billion initiative to bring faster broadband to communities that are difficult to reach, and network upgrades brought on by the growing demand for broadband. Approximately half of the optical fibre used in the UK is produced locally, according to estimates from the TRA; imports from China, India, the US, Poland, and Germany supply the remaining market share.

The investigation concluded that UK consumers were harmed by Chinese optical fibre cables that were both subsidised and dumped. Procedures for trade remedies will now be in place to protect the UK industry. The new anti-dumping duties vary from 23% to 46.2%, while the new countervailing charge rates range from 10.62% to 11.79%.

Background information

The Trade Remedies Authority filed this complaint on April 26, 2022.

The investigations into anti-dumping and anti-subsidy will be conducted between January 1, 2021, and December 31, 2021. The TRA has chosen the injury period (IP), which is from January 1, 2018, to December 31, 2021, as the time range for evaluating injury.

The Trade Remedies Authority is the UK body that assesses whether further trade remedy measures are necessary to counter unfair import practises and unexpected import surges.

The TRA is the arm's-length organisation of the Department for Business & Trade.

If UK industries are concerned about imports, they may apply to the TRA for a new trade remedy action.

These are the third and fourth new investigations that the TRA has launched, after a probe into potential aluminium extrusion dumping that opened in June 2021 and a case involving Turkish ironing boards that began in May 2022.

Imported goods that are being dumped at prices less than what they would get on the global market are the focus of anti-dumping remedies.

Reducing the cost of manufacturing, countervailing remedies target imports that get preferential subsidies in their country of origin. A thorough justification for the reason why not all government subsidies may be countervailed, or contested via trade remedies, can be found in the TRA's instructions on subsidy investigations.

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