« Taiwan Journal of Political Science No.80Publish: 2019/06

Relabeling Countries with Non-Market Economies as Countries with Market-Distorted Economies: The New EU Methodology in Anti-dumping Investigations at the Heart of a Storm

Author: Catherine Li

Abstract / Chinese PDF Download

    The European Union adopted in December 2017 the new Anti-dumping Regulation which aims at protecting its producers against unfair trade practices, especially dumped imports from China. The European Commission’s original proposal to revise its anti-dumping rules was put forward in November 2016, just before the 15th anniversary of China’s accession to the WTO. The deadline meant that China demanded to be recognized as a having market-economy status, and to no longertreated as a non-market economy in anti-dumping investigations. Accordingto the new regulation, the methodology removes the former distinction between market and non-market economies for calculating dumping margins. Instead, the European Commission will need to prove the existence of a significant marketdistortion between a product’s sale price and its production cost. On that basis, it will be allowed to set prices for products by referring, for example, to the price of the good in a country with similar levels of economic development, or to relevant undistorted international costs and prices. Faced with its obligation to respect WTO rules, the European Commission’s new anti-dumping rules are “country- neutral”. However, this new approach has sustained some major criticisms and constitutes one of the most contentious issues in EU-China bilateral trade relations. This research paper will attempt to address the debate on the interpretation of the key provision in China’s Accession Protocol, followed by an analysis of what alternative means and methods for calculating anti-dumpingduties would be applied in cases involving China after 11 December 2016.

Keywords:Analogue Country Methodology、China’s Accession Protocol to the World Trade Organization (WTO)、Non-market Economy (NME)、Shifting in Burden of Proof、Significant Market Distortions