Trade Defense Investigations

Turkey is one of the main users of safeguard and anti-dumping measures and ranks among the top ten users of these instruments among World Trade Organization (WTO) members.

Due to the highly specialized and sophisticated nature of international trade, dumping, subsidy and anti-circumvention investigations require an extensive knowledge and expertise of law, economics and policy of trade defense instruments.

Furthermore, considering various interest groups such as domestic and foreign (exporting) producers, importers, consumers, consumer organizations, producer associations and organizations, the field is the battleground of conflicting interests.

Awareness of industrial dynamics and comprehensive knowledge of local investigation authority’s general approach and considerations provide you a substantial competitive advantage.

To this aim, it is invaluable to work with a competent and dynamic team that acts glocally in a multi-dimensional environment.

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Anti-Dumping Investigations

Exporting a product at a price lower than the price it normally charged on its own home market is said to be “dumping” the product. In this regard, dumping concept is a result of firms’ behavior. In order to defend their domestic industries governments take action against dumping. The applicable procedures, enforcement mechanism, investigation processes are subject to strict international legislation. Since members of WTO signed Anti-Dumping Agreement, they are obliged to comply with the rules of the Agreement. Each step of an Investigation requires extensive specialization and technical information.

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Anti-Subsidy Investigations

Subsidy is defined as a financial contribution made by or on behalf of a government or public body which provides a benefit to the recipient. Since these financial contributions may cause unfair competition for other economic actors, countries may initiate anti-subsidy investigations for the benefit of their producers. However, due to the intergovernmental nature of the subject, anti-subsidy investigations are used less frequently compared to anti-dumping investigations.

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Anti-Circumvention Investigations

Circumvention essentially refers to activities undertaken by exporters of goods to evade or circumvent, either in full or part, anti-dumping duties imposed by the countries importing these goods. Since it has more flexible basis and relatively less cumbersome procedural requirements, Turkey is a frequent user of anti-circumvention investigations.

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Safeguard Investigations

WTO members may restrict imports of a product temporarily to protect their domestic industries in case of a sudden increase of imports. Since safeguard measured are designed as “emergency actions” the definition of injury is wider in scope compared to the one in dumping investigations. Safeguard measures can consist of quantitative import restrictions or of duty increases to higher than bound rates.

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Why Do You Need Professional Help in Investigations?

Owing to its frequent usage, Turkey’s Investigation Authority (Ministry of Economy) has profound capabilities in enforcement of trade policy measures. In many cases, however, it is a first-time experience for a firm to be a related party in such Investigations. Anti-dumping and anti-circumvention investigations are conducted in firm basis, thus, their results may cause significant changes in competition conditions. For example, when your company proved that there is no dumping or circumvention in your operations but other exporters could not, it means a substantial advantage for your firm because of your rivals’ high anti-dumping duty obligations..

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