TRA recommends new duty on Chinese excavators
Authority says anti-dumping measures ranging from 33.03% to 83.5% could benefit UK excavator producers
THE Trade Remedies Authority (TRA) – the UK body that investigates whether trade remedy measures are needed to counter unfair trading practices and unforeseen surges of imports – has proposed that a new anti-dumping measure of up to 83.5% be applied to imports of excavators from China to the UK.
The proposed measure would range from 33.03% for sampled producers that took part in the TRA’s investigation to 83.5% for all other Chinese exporters that did not participate. Such a measure, says the TRA, could benefit UK excavator producers by up to £3.4 million per year.
TRA chief executive Oliver Griffiths said: ‘Excavator production is an important component of the UK’s Advanced Manufacturing sector. Our provisional finding is that UK producers are being undercut significantly by dumped imports from China.’
The TRA opened its investigation in response to an application from JCB. The TRA estimates that during the period of investigation from 1 July 2022 to 30 June 2023, UK excavator producers employed around 900 workers and had a turnover of around £500 million.
Around 180,000 tonnes of excavators were sold in the UK during the period of investigation, with the UK industry supplying 10–25% of this volume. The UK industry’s market share decreased by 11% over the period.
The TRA found that Chinese exporters were able to use reduced production costs to price their exports below UK competitors who did not benefit from an artificially low-cost base. It determined that UK prices were undercut by a rate of 23.39%.
The TRA has published its initial findings in a Statement of Essential Facts (SEF), proposing that an anti-dumping measure be imposed on imports of excavators from China weighing from 11 tonnes up to 80 tonnes.
Interested parties have until 16 December 2024 to comment on the SEF and can do so through the TRA’s public file.
