EU Trade

Steptoe & Johnson’s Brussels legal team has over 25 years experience with European Union and international trade matters. We offer expert advice on the formulation and application of EU trade policy and effective representation of trade interests involved in trade proceedings initiated by the EU, concerning both the EU market and third country markets. Key aims are to ensure fair market access and to ensure for our clients the application of EU trade policy and other measures consistent with EU law and the international trade rules of the WTO.

The Brussels trade team has substantial experience with EU trade remedies cases (anti-dumping, countervailing duty and safeguard proceedings) and also concerning customs issues and the trade impact of legislative initiatives in other areas of EU regulatory competence, for example the trade impact of EU measures concerning:

Chemical substances;
Product approvals and technical standards;
Food safety rules; and
Environmental protection measures.

Where trade obstacles arise in the form of EU Member State domestic regulatory measures, we work with the European Commission to obtain intra-EU “free movement” remedies, relating to the marketing of both goods and services.

The services we provide on these trade and other market access matters include:

Representation in Brussels and on-site through all phases of EU trade law administrative proceedings;
Assessment, legal support and strategy to influence trade proposals;
Strategy and advocacy on EU customs classification/valuation, preferential regimes and application of EU rules of origin;
Advice and legal initiatives to challenge Member State and third country laws hindering market access, through EU administrative procedures, EU trade barriers initiatives leading to WTO dispute settlement, and EU judicial proceedings;
Appeal of EU trade regulations before the EU Courts; and
Advice and advocacy contesting WTO validity of EU trade and regulatory measures.

Trade Remedies Cases
Our team has substantial experience with trade remedies cases. We have generally acted on behalf of exporters to the European Union and EU importers affected by anti-dumping, subsidy, and safeguard proceedings. In this context, our lawyers offer strategic planning and lobbying in addition to expert legal representation throughout the course of the administrative proceedings. In many cases, we coordinate closely with the exporting country Government authorities and/or EU Member States (in support of EU importers’ and users’ interests) with regard to representations and policy initiatives to be taken at the EU level in connection with the proceeding. In several highly visible cases, our strategic efforts have been successful at the Council level in overcoming Commission proposals for definitive measures. We have also represented clients in successful appeals before the Court of First Instance.

Trade Barriers in Export Markets
When our clients in the EU are affected by trade barriers in their export markets, we work closely with the European Commission to pursue representations to the third country government under the EU’s Trade Barriers Regulation (TBR) and, as necessary, to secure international remedies to these barriers. We have represented clients in a number of TBR proceedings which have led to effective regulatory amendments in the target foreign jurisdiction. In other cases, we have been called upon to act on behalf of business interests in the targeted foreign jurisdiction to help respond to EU TBR investigations.

EU Customs
The EU practice offers experience in the key areas of EU customs practice: classification, valuation, preferential tariff regimes and rules of origin. In addition, the customs team has solid experience on other specialized customs matters, such as binding tariff and origin information, tariff suspensions, post-clearance recovery of duties, self-disclosure proceedings, inward/outward processing, customs warehousing, compliance programs, third-country valuation and other customs practices.

World Trade Organization
We advise on the compatibility of EU and Member States’ regulations with the relevant international rules, especially those reflected in the WTO Agreements. Our WTO advice has covered most aspects of the negotiation and application of WTO rules, including the rules of the Anti-Dumping Agreement and Agreements on Trade-Related Aspects of Intellectual Property Rights, Technical Barriers to Trade and Sanitary and Phytosanitary Measures. At issue have been EU trade decisions and regulatory initiatives relating, for example, to the electronics, motor vehicles and biotechnology product sectors.

Steptoe has long been active in international dispute settlement of trade matters. Our attorneys have advised clients regarding some of the most significant international trade disputes handled by the WTO Dispute Settlement Body, as well as dispute settlement under the General Agreement on Tariffs and Trade.

Other Areas of Trade and Market Access Expertise
Other aspects of trade expertise involve strategic advice to corporate clients and governments on aspects of international trade law and negotiation of bilateral trade arrangements (FTAs and other preferential trade) and multilateral agreements affecting trade relations. For example, we are advising a government in its ongoing negotiations for an FTA with the EU, concerning both substantive issues covered by the FTA and the strategy. We also have advised a major industry on utilising the Doha process to achieve specific market access objectives. We also advise corporate and third country interests on EU cross-sectoral regulatory initiatives, such as concerning intellectual property rights, to ensure that the eventual EU legislation complies with TRIPS obligations, for example. See below for more on Steptoe’s WTO dispute settlement experience.

With its long experience in Brussels, we also advise on draft EU regulations that may impact EU market access, whether the regulatory initiative is still truly in the draft stage (pre-Commission approval) or in the form of formal Commission proposals still needing to undergo Parliament and Council review and decision-taking. We are also often confronted with national legislative proposals of Member States, such as those notified under the EU’s stand-still rules or raised as urgent health or safety matters, that may contravene EU/international trade law and coordinate with the industry interests and relevant Commission services to ensure appropriate legal review and compliance. These issues have concerned, for example, biotech products, textiles/apparel and general consumer and electronic goods, chemicals, foods and motor vehicles.

The Broader Steptoe & Johnson LLP Trade Practice
Steptoe & Johnson LLP brings together more than 485 attorneys across eight offices in the United States and Europe. With over 40 attorneys specialized in international trade matters and over four decades of experience, Steptoe has one of the world’s largest and most established international trade practices. While a number of law firms practice in this field, Steptoe’s international trade practice is distinguished by the range and depth of its expertise, the highly sensitive nature and international visibility of many of its cases, and the quality of its clients. In 2007, Chambers USA, a leading international legal publication, named Steptoe's International Trade group the International Trade Practice of the Year.

Steptoe has represented North American, European and Asian companies in a wide array of international trade proceedings, with a particular emphasis on US and European Union (EU) antidumping and countervailing duty proceedings. Over the years, Steptoe attorneys have represented clients in over 150 US antidumping and countervailing duty proceedings; attorneys in its Brussels office have experience in more than 40 EU trade remedies proceedings. We have experience in trade cases across the commercial spectrum:

Primary resources: steel, lumber, uranium, magnesium, copper, plastics, and chemicals;
Consumer goods: textiles, apparel, furniture, motorcycles, bicycles;
Industrial machinery: printing presses, gas turbo-compressor systems, antifriction bearings, and commercial aircraft; and
Raw and processed agricultural products: wheat, seafood, soybeans, animal feeds, kiwi fruit, and fertilizers.

Steptoe’s transatlantic expertise in both US and EU trade law, backed by its significant WTO experience, means that Steptoe is well placed to assist clients facing trade sanctions in the world’s largest trading blocks. Our transatlantic expertise is particularly important when clients, whether in the United States, Europe or Asia, have their products affected by proceedings in both jurisdictions or are caught up in US/EU retaliatory measures, meaning that close coordination between these jurisdictions is essential. The Firm is known particularly for being able to handle complex trade proceedings, appearing not only before the US and EU administrative bodies, for example, but also before national courts and international dispute settlement tribunals, such as those convened under the North American Free Trade Agreement. We also counsel clients on their rights and obligations under international and regional trade agreements, and advise clients involved in dispute settlement proceedings before the World Trade Organization. Steptoe has a long and distinguished record of WTO dispute settlement cases and has had major successes in high profile cases. We are presently representing in China regarding important WTO litigation. Whatever the trade forum, we aim not only to help to achieve a successful resolution in that particular case but also to ensure that our clients understand how that case is influenced by broader trade policy concerns and how to work with the relevant government agencies, in the United States, the EU and in third countries, to shape their trade policies in a more favorable manner.

Listing of EU “Trade Defence” Case Experience

Brazil—cotton yarn producers
China—paracetamol producers
China—zinc-oxide producers
China—ferro-molybdenum producers
China—unwrought unalloyed magnesium producers
China—paint brushes producers
China—persulphates producers
China—steel pipe fittings producers and EU importer
China—glyphosate producers
China—artificial corundum producers
China—ferro-silico-manganese producers
China—steel stranded ropes and cables producers
China—malleable cast iron pipe fittings producer
China—quarto steel plate producers
China—unwrought unalloyed magnesium producers
China—yellow phosphorus producers
China—coal coke producers
China—unbleached cotton fabric producers (AD proceeding and appeal on behalf of largest European importer at Court of First Instance)
China—veterinary antibiotics producers (Sunset Review)
China—bicycles (AD proceeding and appeal at Court of First Instance)
China—textile footwear producers (A-D proceeding and intervention on behalf of EU importers in support of appeal of definitive measures at Court of First Instance)
China—leather and synthetic leather footwear producers (1998 proceedings)
China—leather footwear, representing Chinese Coalition Against Anti-Dumping Duties (180 producer members), 16 individual producers and one major trading company (2005 AD proceedings; 4 Cases of Appeal to the Court of First Instance – on-going)
China—footwear (advising Chinese private/government entities on EU import regime, especially concerning customs classification, AD circumvention and absorption issues)
Egypt—cotton fabric producers
EU—cellular mobile radio telephone producer
EU—carbon black (rubber industry; tyre producers) importers of carbon black from Russia and Egypt
Hong Kong—book-bound photo albums producer (appeal at Court of First Instance)
Hong Kong—sports bags and school bags producers and EU importer
India—synthetic fibre ropes producers
India—PET producer (anti-dumping and countervailing duty expiry reviews on-going)
India—PSF producer (anti-dumping expiry review on-going)
India—PTY producer (expiry review strategy)
Indonesia—footwear producers
Japan—semi-conductors (DRAMS) producer
Korea—Korean Footwear Exporters Association and EU importer of footwear from Korea (three separate safeguard cases, with regard to Italian, French and EU-wide markets)
Pakistan—cotton fabric producers
Pakistan—bed linen producer
South Africa—craft paper producer
Taiwan—glass fibre fabrics producers (combined anti-subsidy investigation)
Turkey—polyester yarn producers
Turkey—portland cement producers
United States—trichloroisocyanuric acid (TCCA) producer
Venezuela—steel wire rod producer
Vietnam—leather footwear producers and trade association (2005 proceeding ongoing)

World Trade Organization
Steptoe & Johnson LLP has been an active player in the growing area of practice relating to the World Trade Organization (WTO). Our attorneys examine all facets of WTO developments, including ongoing trade negotiations and dispute settlement proceedings, to promote our clients’ business goals.

We began our involvement during the negotiations of the WTO's predecessor, the General Agreement on Tariffs and Trade (GATT), and assisted clients in connection with various disputes before GATT tribunals. Steptoe has advised major US and foreign companies, as well as foreign governments, on diverse areas of the WTO agreements and ongoing trade negotiations.

We have been involved in numerous ongoing and potential WTO dispute resolution proceedings, as discussed in detail below. Steptoe attorneys have been active participants in the ongoing debates regarding the WTO and related issues, through professional activities, including speaking and writing.

WTO Analysis and Advocacy
The Uruguay Round of trade negotiations resulted in a broad array of new agreements on international trade issues. Some of these agreements involved new rules in existing areas, such as antidumping and countervailing duty law. Others involved entirely new areas of international trade law, such as services and intellectual property. Steptoe regularly advises clients on the interpretation of these new agreements and on using the agreements to protect their commercial interests. Our attorneys, for instance, have analyzed issues under the Agreement on Standards and Phytosanitary Measures, the Government Procurement Agreement, the Agreement on Subsidies and Countervailing Measures, and the General Agreement on Trade in Services.

Representative Engagements
Clients have benefited from our advice on a wide range of WTO matters:

Definition of a Subsidy - Steptoe attorneys worked with US clients to monitor and influence numerous aspects of the definition of subsidy adopted in the WTO Subsidies Agreement, including the treatment of subsidies received for research and development programs and the criteria for determining when a subsidy is specific to a company or industry and actionable. Our attorneys also worked to ensure that the WTO definition of subsidy was accurately incorporated into US implementing legislation and regulations.
Basic Telecommunications Agreement - Our firm advised a large US telecommunications company in connection with the negotiation of the Basic Telecommunications Agreement, under the General Agreement on Trade in Services. Since the agreement was concluded in February 1997, we have advised a variety of clients on the implementation and application of the agreement.
Government Procurement - A major US telecommunications manufacturer's proposal was rejected by a Japanese agency, which awarded the contract to a Japanese company. Steptoe worked with the US company and the Office of the US Trade Representative to develop arguments as to why the Japanese agency's actions were inconsistent with the WTO Agreement on Government Procurement. In response to these arguments, the Japanese agency agreed to reopen the contract award.
Corn Gluten Feed - US exports of this product are continually threatened with barriers to selling in the European market. Steptoe was instrumental in developing the US position on market access in the Uruguay Round of Multilateral Trade Negotiations. Steptoe has on several occasions worked with the US government to ensure that the threat of a WTO case was used to protect our client's access to the European market. When the EU retaliated against corn gluten feed in response to a US safeguard measure on wheat gluten, we assisted in resolving the dispute and minimizing the commercial impact on the US corn gluten industry.
Motorcycles - Large US motorcycles have been shut out of many developing country markets by prohibitive tariffs and non-tariff barriers. One of the most attractive markets is Taiwan. In connection with Taiwan's negotiations for accession to the WTO, Steptoe worked with USTR to obtain significant concessions to liberalize access to Taiwan's motorcycle sector.
Pharmaceuticals - Steptoe has worked with the European pharmaceuticals industry to provide advice on the application of the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). For instance, Steptoe advised on the WTO-consistency of a recent EU proposal to restrict the reimportation of pharmaceuticals exported from the EU to certain developing countries.
Distilled Spirits - Steptoe has worked with leading companies in the distilled spirits industry to ensure WTO members fully implement their WTO commitments. Steptoe has also advocated on behalf of the spirits industry on the important issue of geographical indications under the TRIPs Agreement and under regional trade arrangements.
Food Safety Standards - The US currently bans beef from entering the country if it contains residues of animal drugs not approved by the US Food and Drug Administration (FDA). The fact that a drug has undergone extensive testing abroad and has been approved by foreign authorities does not guarantee market access for beef containing that drug. Steptoe attorneys have advocated, on behalf of a US company, that the FDA recognize the foreign testing in such situations, to ensure consistency with US and WTO obligations under the Agreement on Standards and Phytosanitary Measures.
Advice to Governments - After the successful conclusion of the Uruguay Round negotiations, Steptoe attorneys were retained by a foreign trade ministry to draft the legislation needed to ensure the country's trade laws conformed to the new WTO obligations. Our attorneys advised another country's trade ministry on numerous WTO-related issues, particularly with respect to two high-profile WTO challenges in the antidumping area and the appropriate interpretation of the WTO Safeguards Agreement. We also have advised on a WTO challenge of US imposition of countervailing duties.

WTO Litigation
Steptoe has long been active in international dispute settlement of trade matters. Our attorneys have advised clients regarding some of the most significant international trade disputes handled by the WTO Dispute Settlement Body, as well as dispute settlement under the General Agreement on Tariffs and Trade.

Throughout our representations, Steptoe attorneys emphasize that such litigation is a means to a commercial end, a mechanism for increasing leverage in government negotiations, and in this regard must be handled differently from other trade litigation.

Representative Engagements
Some examples of Steptoe's WTO litigation practice are as follows:

Corn Syrup - Steptoe represented the US manufacturers of high fructose corn syrup in a WTO challenge to a Mexican antidumping determination. The WTO panel ruled that Mexico's determination of injury was inconsistent with its WTO obligations, setting an important precedent regarding the proper interpretation of the WTO Antidumping Agreement. In a subsequent phase, a WTO panel ruled that Mexico had failed to implement the initial ruling. Mexico then revoked the antidumping duty order.
Lumber - On behalf of the British Columbia lumber producers, Steptoe has worked closely with the Canadian government on several WTO challenges relating to the United States’ imposition of countervailing and antidumping duties on imports of Canadian lumber in 2002. These cases have included a challenge to the US policy of treating export restraints as countervailable subsidies, a challenge to a US law that could be used to preclude the US Commerce Department from giving full effect to adverse WTO decisions, a successful challenge to the Commerce Department’s preliminary countervailing duty determination in the lumber proceeding, and ongoing challenges to the Commerce Department’s final countervailing and antidumping duty determinations as well as the US International Trade Commission’s final determination.
Steel - A principal European steel producer that acquired production facilities in a market-value privatization was alleged to benefit from the subsidies received by the seller of the facilities. After the US Commerce Department imposed countervailing duties in 1993, we worked with the steel producer and with the European Commission to challenge the case in GATT dispute settlement. The dispute resulted in a panel ruling that required consideration of the purchase price in a privatization transaction. After the panel ruling, the US Commerce Department again imposed duties in this situation, under the 1994 Uruguay Round Agreements Act. The WTO Appellate Body found these duties inconsistent with US WTO obligations. After the US revised its methodology, the WTO Appellate Body has again ruled against the US approach.
Distilled Spirits - Our attorneys have advised the distilled spirits industry in their three successful WTO challenges to discriminatory excise tax regimes.
Aircraft - Four countries engaged in a joint program to assist a major European aerospace manufacturer. On behalf of the leading US aircraft manufacturer, Steptoe worked with the USTR and the Commerce Department to challenge the European assistance in two GATT proceedings. As a result of US success in one case and the prospect of US success in a second case, a bilateral agreement was reached between the US and the European Community. Later, Steptoe attorneys worked with US negotiators to respond to European initiatives respecting aircraft subsidy disciplines in the Uruguay Round and in subsequent WTO negotiations. Recently, we advised an aircraft manufacturer regarding Canada's WTO challenge to a Brazilian export finance program. The WTO Appellate Body ruled that Brazil's subsidies were inconsistent with its WTO obligations and, in a subsequent phase of the proceeding, that Brazil had not implemented the initial ruling.
Avionics - The French government provided a significant subsidy to a state-owned company to develop an avionics product for use in aircraft produced by a major European aerospace manufacturer. Steptoe worked with a US company that supplies this avionics product to assess the prospects for a WTO case challenging the French subsidy under the WTO Agreement on Subsidies and Countervailing Measures.