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EU impact assessment: Possible EU changes concerning China’s status in the WTO concering use of trade defence measures.

10. February 2016 - 11:57
Peter Brun

The EU Commission has launched its inception impact assessment investigation on possible change in the EU methodology to establish dumping in trade defence investigations concerning the People’s Republic of China – the so called ”market economy status” in AD/CVD proceedings. The study will investigate possible consequences of the following options:

 

Option 1: The baseline scenario would leave the current legislation and practice, concerning the

treatment of the PRC unchanged. The impact of the baseline option will be assessed.

 

Option 2: Removing China from the list of non-market economy countries in the EU anti-dumping

legislation. It would require an ordinary legislative procedure amending the antidumping

regulation. If non-market economy conditions continue to prevail in a particular sector, then it may

be possible for the Commission to prove that domestic prices and costs in this country must be

disregarded and that normal value must be calculated on third country costs on a case-by-case

basis. Otherwise, the standard anti-dumping methodology would be applied to investigations

concerning their exports, with no account being taken of any distortions in their economy as

compared with a normal market economy.

 

Option 3: Modifying the methodology to calculate dumping in EU trade defence investigations as part

of a package including additional measures aimed at meeting the above-mentioned policy

objectives. EU anti-dumping legislation would be modified by removing the PRC from the list of

non-market economy countries while, at the same time, strengthening other provisions of the trade

defence legislation.

More information on the EU inception impact assessment can be viewed here:

http://ec.europa.eu/smart-regulation/roadmaps/docs/2016_trade_002_dumping_investigations_china_en.pdf