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