There are already big reforms planned for the UK Trade Remedies Authority (“TRA”) – less than two years after its establishment – and for the overall operation of the UK trade remedies regime. On March 9, the UK Government announced changes to its trade remedies regime to transition to a more complex investigatory regime.

Changes include:

  • The TRA taking on responsibility for investigating bilateral safeguard cases as part of free trade agreements;
  • Greater Ministerial powers to:
    • request the TRA provides alternative options to its main recommendations, as required;
    • override the TRA’s Economic Interest Test (“EIT”) on public interest grounds (allowing Ministers to apply measures even if the EIT is not met);
    • ask the TRA to re-evaluate a recommendation; and
    • take a different decision to that recommended by the TRA.

The framework of proposed changes will also require the TRA to notify Ministers before initiating new investigations.

Potential Impact of Reforms

Perhaps the two greatest envisioned changes are giving the government the power to apply and revoke measures absent the TRA’s recommendation. In that regard, Ministers will be able to apply an alternative remedy to that recommended by the TRA (on the condition that there is supporting evidence to do so and it is in the public interest even if the EIT is not met). Likewise, Ministers will be able to revoke trade remedy measures without the need for a TRA recommendation if retaining a measure is no longer in the public interest.

While public interest considerations seem to still make up an integral part of the process, this may be an indication that the importance of the EIT mechanism itself is being diluted. The EIT is unique to the UK trade remedies regimes. The TRA must carry out the EIT to determine whether the proposed trade remedy measure would be in the UK’s broader economic interests. Relevant considerations under the EIT include: the significance of affected industries/consumers (in terms of Gross Value Added, turnover and employment) and the impact of the remedy on affected UK industries/consumers, geographic areas or particular groups.

Next Steps:

The TRA is working with the Department for Business and Trade (“DBT”) and will be setting up joint round-tables for interested stakeholders to explain the proposed changes. Legislative amendments will be proposed in the Finance Bill, due later this month. If you would be interested in receiving further information in respect of the UK trade remedies regime, please get in touch with our team. 

Author

Jennifer Revis is a partner in the EU Competition and Trade Practice Group of Baker McKenzie's London office. She is acknowledged for her timely advice and responsiveness by the Legal 500. Jennifer has been on secondment to the UK customs authorities (Her Majesty's Revenue and Customs) in their tax and excise litigation department and to the Firm's European Law Centre in Brussels. Jennifer is frequently invited to speak at external conferences and regularly contributes articles to tax journals on customs matters such as De Voils Indirect Tax Journal.

Author

Sven Bates is Of Counsel for International Trade at Baker McKenzie. He has spent the majority of his career at the Firm's London office, focusing on international trade compliance, trade remedies and anti-bribery. He has also practiced in Amsterdam and has previously worked for the European Commission and the Shadow Attorney General. Sven has extensive experience in particular in the financial services sector, and has undertaken secondments at a Tier 1 UK bank and the Lloyd's insurance market.

Author

Rini joined Baker McKenzie after six years with the Canadian government, having worked on Brexit policy, as well in trade and tax litigation. She obtained her legal training with the Canadian government with the Trade Law Bureau and the Department of Justice. Her background in trade matters spans legal advisory, litigation and policy, having worked on free trade agreements, WTO litigation on market access and trade remedies issues. Prior to joining the Canadian government, she was a government affairs associate at one of Canada's most recognizable brands.

Author

Courtney is an associate in the Competition, Trade and Foreign Investment practice group, with a focus on trade and foreign investment matters across a range of sectors. She joined Baker McKenzie in 2022 from another large international law firm where she also advised on a range of international trade matters, including a three year secondment to the trading entity of a global energy major.