LEVA-EU, the leading trade association advocating for the light electric vehicle (LEV) sector, is calling on the European Commission to review the Community interest test in EU trade defence measures, following the example of the UK’s economic interest test implemented post Brexit.

This call comes as concerns persist that the Community interest test, in its current form, is overly focused on protecting EU producers, often neglecting the broader impact on importing and other businesses, retailers, and consumers—particularly regarding finished consumer products. These concerns were first recognised by the European Commission in its 2006 communication on trade defence instruments, which was meant to initiate a dialogue on the issue. Unfortunately, that dialogue did not lead to any meaningful reform. LEVA-EU believes it is now time to revive that discussion and reassess the role of the Community interest test in shaping EU trade policy.

“The European Commission itself raised the need for a broader approach to trade defence measures almost 20 years ago,” said Annick Roetynck, Managing Director at LEVA-EU. “However, no concrete results followed, and the concerns identified in 2006 remain just as relevant today. The introduction of the economic interest test in the UK demonstrates how trade defence measures can be assessed in a more balanced and transparent way. The EU should take this as an opportunity to revisit and improve its own approach.”

Under the current EU framework, trade defence measures such as anti-dumping and countervailing duties are primarily designed to safeguard domestic manufacturers against unfair competition. However, the Community interest test, which is meant to ensure that such measures also align with the broader interests of the EU economy, is often applied in a way that prioritises the interests of EU producers over those of the wider market.

The UK’s economic interest test was applied in the review that resulted in the recent decision to revoke measures against e-bike imports from China. The Trade Remedies Authority concluded: “Overall, extending the existing measure is very likely to lead to a significant overall welfare loss of between £1.7m to £79.0m per year. The average impact across all scenarios is £31.1m per year. The highest benefits for UK producers occur in the scenarios with the highest costs to importers/retailers and consumers, and there are no scenarios in which extending the measure would have a positive impact.”

This economic interest test provides a valuable example of how trade measures can be assessed with greater consideration for their impact on the entire supply chain, including importers, distributors, retailers, and consumers. The outcome of that assessment clearly shows that similar concerns should be addressed in the EU, particularly in relation to trade defence measures affecting bicycles, e-bikes, and especially essential bicycle components from China.

Annick Roetynck continues: “We urge the European Commission to reassess the Community interest test in light of the UK’s approach and to restart the discussion it initiated in 2006. The EU must ensure that its trade defence instruments are applied in a way that truly reflects the interests of the entire market, rather than disproportionately favouring one group of stakeholders.”

LEVA-EU will continue to engage with policymakers, industry stakeholders, and trade experts to push for this much-needed review of EU trade defence policy.