Harmful international trade practices: guidance for business
How to identify and report harmful trade practices that affect your business when exporting, importing or operating domestically.
This guidance sets out the types of harmful trading practices, sometimes called market distorting practices (MDPs), that you can face when accessing international markets or operating domestically.
These harmful practices undermine free and fair trade and prevent businesses from competing based on merit.
If you suspect your business has been impacted by any of the harmful trade practices described on this page these issues should be reported to the government.
View further information and guidance on barriers to trading or investing abroad.
Other public bodies which may be relevant to your concern
For concerns regarding dumped foreign imports or subsidised foreign imports contact the Trade Remedies Authority (TRA). The TRA is the UK’s independent body responsible for conducting trade remedies investigations. They make recommendations to the Secretary of State for Business and Trade. The government has published all trade remedies notices made by the Secretary of State for Business and Trade.
The Intellectual Property Office (IPO) is the official UK government body responsible for intellectual property (IP) rights including patents, designs, trade marks and copyright. The IPO also provides information on protecting your IP abroad.
The Competition and Markets Authority (CMA) is the UK’s primary competition and consumer authority. The CMA has a number of functions aimed at promoting competitive markets. These include investigating mergers with the potential to harm competition and investigating unlawful anticompetitive practices. Competition, consumer or market problems can be reported to the CMA.
The National Security and Investment (NSI) Act gives the government powers to scrutinise and intervene in investments and other acquisitions of control into the UK economy for national security reasons. The government has published detailed guidance on the NSI Act.
What happens when you report a harmful trade practice
If you report a harmful international trade practice, the Department for Business and Trade (DBT) will seek to respond within 5 working days. You may be asked for more information, and information you provide may be shared with other relevant UK government departments.
DBT has a number of channels and resources at its disposal which we can use to help resolve your issue. For example, our overseas posts can engage with local governments and organisations on discriminatory practices or other barriers to your business.
For longer-term, more complex issues reported using report a trade barrier, DBT may decide to:
- explore a diplomatic resolution
- discuss strategic barriers at overseas ministerial visits
- engage in government-to-government talks
- raise the barrier at the World Trade Organization (WTO)
- inform Free Trade Agreement (FTA) negotiations where relevant
Survey on harms to business caused by foreign subsidies in mergers and procurement
The government is also collecting evidence about harms to businesses caused by foreign subsidies in mergers and procurement. Businesses can report suspected instances of these practices to inform policy development in this area.
If you complete our questionnaire on foreign subsidies in mergers and acquisitions and procurement, you will receive an immediate acknowledgement. DBT will aim to respond within 30 working days. While we look into your response to our questionnaire, we may get in touch to ask for further information. However, we cannot guarantee that we will act on individual reported concerns.
Information you provide may be shared with other departments within the government. Please state in your response whether you would like reported concerns to remain anonymous and do not consent for DBT to share these with partners outside of the government.
Impact of market distortion on access to overseas markets
The following non-exhaustive list aims to help businesses recognise harmful international trading practices when they are accessing overseas markets, and how they can be reported to the government.
Harmful foreign subsidies
Financial assistance or an advantage granted by a government in a foreign market is often, although not always, a ‘subsidy’. When subsidies are given in an unfair and non-transparent way to favour domestic businesses, it reduces the ability of UK businesses to compete.
This may include:
- businesses selling goods, or providing services, below market value or with very low rates of return (businesses may also do this without benefitting from subsidies)
- certain businesses receiving unlimited government guarantees (in value or duration) for debts or liabilities
- businesses receiving a subsidy that requires the use of domestically produced goods
- certain products produced by businesses in greater volumes than their expected market share
- lack of transparency. For example, no clear, accessible guidance on the eligibility criteria for subsidy programmes, and no reasons given in decisions on awarding of subsidies
Report a harmful foreign subsidy
Unfair benefits received by state-owned enterprises (SOEs)
A state-owned enterprise (SOE) is an entity engaged in commercial activities which is majority or wholly owned or controlled by governments. This can include being owned or controlled by a government from outside of the market that the SOE is operating in.
SOEs can be given rights or privileges, government funding, or exemptions from laws and regulations. This limits the ability of private businesses to compete fairly in markets where SOEs operate.
Unfair benefits received by SOEs may include:
- selling produce below market value or with very low rates of return
- questionably high bids placed for mergers and acquisitions
- receipt of regulatory licenses much quicker than private businesses
- exemptions from certain regulations and their implementation
- regulations that appear to be designed in favour of certain production practices or business structures
- an SOE being successful in a large number of procurement bids and at abnormally low prices
- an SOE refusing to buy or sell to you without a clear commercial reason
- an SOE refusing to buy or sell to you at the market rate without a commercial reason
Report unfair behaviour by SOEs
Forced technology transfer (FTT)
FTT can occur where there are regulatory, business environment, or administrative processes in a market that directly or indirectly require UK companies to share their technology as a condition for market access or regulatory approval. Here, technology may include know-how and knowledge assets that have been protected as trade secrets or patented invention.
This may include:
- access to certain markets or sectors conditional upon the transfer of technology. This can also include partnering with local businesses or entering into a joint venture on condition of sharing or transferring technology.
- local production and local content requirements that include direct or indirect requirements to transfer technology in exchange for market access
- regulatory approval of a licence or sudden revocation of a licence conditional on the transfer of technology
- technology leakage during regulatory, administrative or judicial procedures
Report forced technology transfer
The Intellectual Property Office (IPO) provides detailed information on:
Discriminatory enforcement of competition policy
This occurs where competition law in a country is applied in an unfair way to target UK businesses or protect domestic businesses. Competition law includes legislation which bans anti-competitive agreements between businesses, such as agreements to fix prices, and making it illegal to abuse a dominant market position.
This may include:
- failure to have an operationally independent competition authority or regulator
- unfair application of competition law in a country to target UK businesses or protect domestic businesses. This can include inconsistent application of competition law between domestic and foreign businesses, or state and private enterprises.
Report discriminatory enforcement of competition policy
Discriminatory regulation
An example is technical regulations or conformity procedures (such as testing, certification and inspection) that are applied in a discretionary or unfair way. These regulations or procedures may disadvantage UK businesses or protect domestic businesses.
Discriminatory regulation includes:
- a regulatory environment that unjustly favours domestic businesses
- credits or benefits that are only available to domestic businesses
- slower licensing and approval requirements for foreign businesses compared to domestic companies
- lack of approval for licences despite meeting technical criteria
- mandatory requirements, including technical regulation and conformity assessment procedures. These requirements can create unnecessary or burdensome logistical barriers for UK businesses to a greater degree than domestic businesses without clear justification.
If your issue relates to a regulation that has already been implemented you should report a trade barrier online on great.gov.uk.
Harmful international trading practices that affect the UK domestic market
The following non-exhaustive list aims to help businesses recognise harmful international trading practices impacting the UK domestic market and how they can be reported to the government.
Dumped foreign imports
Dumping occurs when goods are imported into a country and sold at a price that is below their normal value in their country of export. This may be causing injury to domestic industry.
Trade Remedies Authority (TRA) is the UK’s independent competent authority. The TRA is responsible for investigating whether new trade remedies are needed to prevent injury to UK industry caused by unfair trading practices such as ‘dumping’.
The WTO Agreement on Dumping sets out the requirements which must be met for member states to impose anti-dumping measures.
Find out how the TRA carries out a dumping investigation.
Report dumped foreign imports directly to the TRA by applying for a trade remedy investigation via their pre-application office.
For further information and support email TRA at contact@traderemedies.gov.uk.
For further information check:
- Handbook for SMEs
- How the TRA carries out an anti-dumping investigation
- Introducing the UK Trade Remedies Authority
Subsidised foreign imports
Foreign goods imported into the UK may benefit from subsidies in their domestic markets. These subsidies may promote unfair trade in goods that harm UK industry.
A subsidy exists if there is either:
- a financial contribution by a foreign authority which confers a benefit on the recipient (usually an industry or business manufacturing goods)
- or a form of income or price support received from a foreign authority which confers a benefit on the recipient
Not all subsidies that benefit foreign industry meet the requirements under WTO rules against which an anti-subsidy investigation can take place. These WTO rules require a subsidy to be specific to certain companies or industries. When granted, a subsidy has to be either directly or indirectly for the manufacture, production, export or transport of goods.
The TRA is responsible for investigating whether new trade remedies are needed to prevent injury to UK industry caused by unfair trading practices such as ‘subsidisation’. The WTO Agreement on Subsidies and Countervailing Measures sets out the requirements which must be met for Members to impose anti-subsidy measures.
Report subsidised foreign imports directly to the TRA by applying for an anti-subsidy investigation using their pre-application office.
For further information and support you can also contact the Trade Remedies Authority by emailing contact@traderemedies.gov.uk
For further information:
Foreign subsidies in mergers and procurement
Other jurisdictions are regulating against foreign subsidies that impact the level playing field in mergers and procurement. They believe their domestic industries are being harmed by these practices. This is on the basis that they consider that such subsidies may allow recipients to:
- offer unfair low prices and unfairly disadvantage competitors
- make it easier to finance the acquisition of businesses
- undermine the level playing field in public tenders by helping subsidised companies undercut rivals
How to report foreign subsidies in mergers and procurement
You can report foreign subsidies in mergers and acquisitions and procurement.
The government is collecting evidence about harms to businesses caused by subsidies in mergers and procurement. We are therefore currently providing a standing facility for businesses to report suspected instances of these practices to inform policy development. If you submit a report, we will aim to respond to you within 30 working days.
Please note that DBT’s reporting is separate from the functions of the Competition and Markets Authority. If you wish to raise concerns or provide information to the CMA on matters within its function, it is important that you contact the CMA directly.
Further information
Trade barriers
Find out what trade barriers are and how they may affect you when exporting goods or services. Check all published barriers that may affect you when trading and investing abroad.
ePing notifications: set up email notifications with the World Trade Organization (WTO) to get early warnings of possible future trade problems.
How to export goods
Find information about how to move goods from the UK to the rest of the world, including rules, restrictions, taxes, duties and export documentation.
Check TRAINS, the United Nations Conference on Trade and Development (UNCTAD) global database of Non-Tariff Measures (NTMs) based on official regulations.
Useful information
Find a British embassy, high commission, consulate or representative office.