The mechanisms for defending EU companies in the face of unfair competition from across the globe, the so-called 'Trade Defence Instruments', are going to be reviewed by the Commission. The last revision of these mechanisms was in 1995 and Commission believes there is now a need for an examination of their efficiency and effectiveness.

The Trade Defence Instruments, which are going to be reviewed, are created to counter the dumping of under-priced products on its markets, re-establish a level playing field for its businesses in the face of unfair subsidies and ensure healthy competition through safeguards, in the event of sudden shifts in trade flows. The last revision of these mechanisms was in 1995 and the European Commission believes there is now a need for an examination of their efficiency and effectiveness.

The European Commission aims to deliver its reform proposal in about one year from now following a full, open evaluation and consultation process. According to the EU Trade Commissioner Karel De Gucht, open trade based upon a global system of rules, fair competition and a level-playing field for all businesses are the very foundations of EU trade policy. EU trade defence system is vital to ensure that this is maintained in the face of unfair practices. Ms De Gucht stressed the need to make sure EU mechanism remains cutting-edge and effective in the face of challenges from an increasingly globalized economic environment. In 2009, MEPs also adopted a report in which they asked for revision of those rules in order to boost internationalisation of EU SMEs.

The EU has three trade remedy instruments at its disposal to address unfair or suddenly rising imports due to unfair practices by non-EU countries: anti-dumping, anti-subsidy and safeguards, of which anti-dumping is the most frequently used. Trade Defence Instruments (TDI) are provided for in the framework of the World Trade Organisation (WTO) and European Commission is responsible for investigating allegations of dumping or subsidisation.