The Public Interest Principle and Egypt’s Anti-Dumping Laws
In a world marked by accelerating trade dumping and widening gaps between industry protection and public interest, trade defense policies have become more than just administrative tools—they are decisions that affect consumers’ daily lives, national production chains, and overall market stability. Among these policies, anti-dumping duties stand out as one of the most sensitive tools, given their direct impact on prices, supply chains, and investment climate.
Although these duties are initially designed to restore balance in favor of the injured local industry, when applied without a proper assessment of the public interest, they risk becoming an economic burden. This article highlights the necessity of embedding the “public interest” principle as a mandatory component in anti-dumping decisions in Egypt, drawing on mature international models and recent domestic cases that exposed gaps in implementation.
When Protection Becomes a Burden
The concept of public interest in trade policy does not mean sacrificing domestic industry. Rather, it calls for evaluating the broader impact of government intervention on consumers, interconnected sectors, employment, and prices. Any protective measure, like a duty, must be treated as an economic decision that influences dozens—if not hundreds—of variables, not merely a reaction to a complaint.
This concept relies on the “Net Welfare Principle,” which simply asks: Will the proposed action yield more benefit than harm? If the harm outweighs the benefit, why proceed? This necessitates the preparation of an independent report assessing the impact of any protective measure.
The European Union: Collective Rationality in Trade Decisions
The EU provides a clear model for integrating the public interest in anti-dumping enforcement. Article 21 of the Basic Anti-Dumping Regulation (Regulation (EU) 2016/1036) obligates the European Commission to conduct a thorough assessment of the economic and social impact of any proposed measure.
In the case of anti-dumping duties on coated steel imports from China, addressed in Regulation (EU) 2019/687, the Commission not only confirmed dumping but also attached a separate report evaluating the effect of the duties on other sectors like automotive and home appliances. The final decision to impose duties was taken only after confirming that the wider economy could absorb the impact without major harm.
The Impact of Safeguard Duties on Aluminum in Egypt
In April 2021, Egypt’s Ministry of Trade and Industry imposed final safeguard duties on imports of aluminium products (billets, cylinders, and wires) for three years, starting with a 16.5% CIF-based duty or a minimum of USD 333 per ton. The measure followed a complaint filed by Egyptalum, citing material injury from low-priced imports.
However, reports from the Federation of Egyptian Industries and the Chamber of Engineering Industries indicated that domestic aluminium prices rose by more than 18% after the decision. Key industries that rely on aluminium as an input—such as electrical appliances and metal construction—were negatively impacted, without any notable expansion in Egyptalum’s capacity or employment.
This case illustrates the absence of any formal public interest evaluation prior to the decision. No attempt was made to assess the broader economic damage, compare outcomes across sectors, or evaluate the implications for end consumers.
International Comparisons: South Africa and Canada
South Africa’s Anti-Dumping Act No. 71 of 2002 explicitly requires an analysis of the overall economic effect of any proposed duty. Authorities may refrain from imposing duties if their negative impact outweighs expected benefits.
In Canada, the Canadian International Trade Tribunal (CITT) conducts public consultations and issues comprehensive economic assessments before any protective measure is adopted. This consultative framework adds transparency and structural balance to trade decisions.
Conclusion
This article clearly demonstrates that Egypt’s current legal framework—Law No. 161 of 1998—has not kept pace with the complexity of modern trade dynamics. Economic decisions can no longer rely on unilateral views or be based solely on producers’ complaints, while ignoring consumer voices and macroeconomic impacts.
Incorporating the public interest principle through a mandatory, independent economic assessment should be enshrined in legislation. This is not about delaying decisions—it’s about balancing them.
We therefore recommend amending Law No. 161 of 1998 to include a binding provision requiring the Ministry of Trade and Industry to conduct a public interest evaluation as part of every anti-dumping case. This assessment should be developed by an independent team and reviewed by a permanent advisory board representing affected industries, consumers, and statistical authorities.
Only through such reform can Egypt restore confidence in its trade remedies and ensure that protection does not become distortion.
Frequently Asked Questions
Why is it important to include a formal public interest evaluation in Egypt’s anti-dumping decisions?
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Because anti-dumping duties affect more than just one industry—they impact consumers, supply chains, employment, and market stability. Without a formal evaluation, decisions may benefit a narrow group but harm the wider economy.
How does the “Net Welfare Principle” help balance the benefits and harms of anti-dumping duties?
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It asks whether the action brings more benefit than harm. This principle helps ensure measures genuinely improve national welfare, not just respond to narrow complaints, by assessing broader economic impacts.
What lessons can Egypt learn from the EU, South Africa, and Canada in handling anti-dumping measures?
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Egypt can adopt practices like independent impact reports (EU), mandatory economic effect analysis (South Africa), and public consultations (Canada) to improve transparency, fairness, and market balance.
How did Egypt’s 2021 aluminium safeguard duties reveal weaknesses in the current legal framework?
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The aluminium tariffs raised local prices by over 18% and hurt key industries without boosting local production or jobs. This exposed the absence of formal public interest assessments and the risks of narrowly focused decisions.
What legislative reforms are recommended to modernize Egypt’s Law No. 161 of 1998?
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Amend the law to require independent public interest evaluations in every anti-dumping case. Establish an advisory board with experts, industry representatives, and consumers to ensure balanced, well-informed decisions.
To find out more, please fill out the form or email us at: info@eg.Andersen.com
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