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12/15/16

International Trade-Dumping Duties:China starts trade battle over Market Economy Status

Beijing on Monday (12 December) filed a dispute with the World Trade Organization over the approach used by the European Union and the United States to calculate anti-dumping measures against Chinese exports.

When China joined the WTO in 2001, its accession terms allowed other WTO members to treat it as a non-market economy when assessing dumping duties for 15 years. That gave trade partners the advantage of using a third country’s prices to gauge whether China was selling its goods below market value.

But part of that clause expired on Sunday (11 December), which China says means trading partners must drop their use of such surrogate pricing.

China’s commerce ministry regretted that the EU and the US have not carried out their obligation and has requested consultations with both parties to have a WTO panel rule, the first step in what will likely be a drawn out battle at the Geneva-based body.

“China has communicated through many channels for the third-country comparison to expire. What’s very regrettable is that the EU and US have not acted to allow it to expire. It has had a severe impact on Chinese exports,” it said. “China is protecting its lawful rights and acting appropriately to maintain the WTO rules.”

The European Commission proposed last month a new way of treating China, but its plans are awaiting approval from the EU’s 28 member states and the European Parliament. 

Read more: China starts trade battle over Market Economy Status – EurActiv.com

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