New EU anti-dumping regulations that change the substance without changing the medicine

Tu Xinquan Cao Hongyu

（Source: "Guangming Daily"November 28, 2016 Edition 12）

ToOn December 11, it will be the 15th anniversary of China’s accession to the World w88 Organization (WTO). At that time, the anti-dumping “surrogate country” provisions that China committed to when joining the WTO will also expire. There are ongoing disputes between China and the EU over the application of the "surrogate country principle" and the so-called "market economy status issue", and there is still no conclusion as we approach the end of the transition period. Recently, the European Commission issued a new legislative proposal to use the "market distortion" principle to replace the "market economy" standard. In name, it fulfilled its commitment to the WTO, but in fact, it changed the rules without changing the medicine, further "distorting" WTO rules.

The European Commission’s new proposal avoids the issue of China’s market economy status and stipulates that it will no longer be used when conducting w88 remedy investigationsInstead of classifying lists such as "non-market economy" and "market economy", it adopts a "country-neutral" approach and focuses on investigating situations where "market distortions" occur in domestic prices or costs, such as government intervention. If it is determined that the price of a certain country's export products is "market distorted", data from "appropriately representative countries with a similar level of economic development to the exporting country" will be used to replace the country's domestic prices, and then the dumping margin will be calculated.

On the surface, the EU no longer adopts the surrogate country approach based on market economy status; but in fact, this new approach is a reversal of the pastThe "market economy" standard is put in another way, which obviously means that China will continue to implement the "surrogate country" standard. EU w88 Commissioner Malmström has admitted that the new bill "calculates anti-dumping duties roughly at the current level, which allows the EU to fulfill its obligations under Article 15 of the WTO Protocol while still ensuring its own w88 remedy capabilities." Behind this legislative proposal is the EU's intention to transfer the past "market economy status" standard to the "market distortion" principle by eliminating discriminatory practices in exchange for maintaining and strengthening existing w88 protection.

FromSince the outbreak of the European debt crisis in 2010, the EU's economic performance has been struggling, and its international competitiveness has been declining. Faced with the dilemma, the EU did not start from the root of the problem and strengthen its competitiveness through technological innovation and industrial transformation. Instead, it blamed the exports of China and other countries and frequently used w88 protectionism to suppress the export of Chinese manufacturing products. The previous disputes over photovoltaic products and the current dispute over steel products all reflect that the EU is moving further and further down the road of w88 protectionism.

In fact, w88 protection means cannot bring good results in improving the EU's economy and competitiveness. On the contrary, the EU's current economic difficulties are closely related to the EU's excessive protection of internal enterprises and labor. Rigid labor market and wage levels, as well as high market entry standards, artificially weaken the profitability of enterprises, thereby reducing the price competitiveness of EU products. At the same time, for some industries in which the EU does not have a comparative advantage, excessive protection levels provide a breeding ground for the survival of backward enterprises that should withdraw from the market, and also add additional burdens to the EU's weak financial situation. Precisely the EU’s ownThe problem of "market distortion" makes it difficult for the products of some industries to survive in the face of fierce competition in the international market.

Looking at China,Since its accession to the WTO, China has continued to adhere to globalization and w88 liberalization, and earnestly abide by the WTO charter and its "entry" commitments. Relying on its own endowment advantages and vast domestic and international market resources, China has achieved rapid economic and w88 development, which has undergone earth-shaking changes compared with the beginning of its "entry to the WTO." At the same time, China has become increasingly proficient in applying WTO rules and has often won its disputes with Europe.

Therefore, the EU intends to bypass existing regulations and formulate new anti-dumping methods from scratch. This is a violation of the principles of the multilateral free w88 system and is inconsistent with the EU's long-standing policy.The slogan of “free w88” is contradictory. Judging from the recent WTO ruling on EU violations in the biodiesel w88 dispute between Argentina and the EU, the EU's alternative price approach of "international market prices" is also difficult to gain a foothold within the WTO framework. Against this background, the EU does not seek to solve fundamental internal problems and strive to improve the international competitiveness of its own industries. Instead, it relies on protectionist measures. Although it may have the effect of increasing income and employment in a short period of time, it is tantamount to drinking poison to quench thirst. On the one hand, it will bring more severe prospects to the EU's already unfavorable economic development situation, and on the other hand, it will inevitably cast a shadow on the global economic and w88 liberalization process that is entering the cold winter.

As one of the most important members of the WTO, the EU has the responsibility to take the lead in complying with the WTO rules it participated in formulating, and should not undermine the multilateral trading system through disguised violations. As China's participation in the global economy gradually deepens, China is willing to carry out economic and w88 exchanges with Europe in a more open manner. Giving up its obsession with protectionism and pursuing mutual benefit and win-win cooperation with China and other trading partners is the right path for the EU to get out of its economic predicament and safeguard people's well-being.

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