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China Files Complaint on EU’s New Anti-Dumping Rules

Laws & Regulations 3353

GENEVA, Switzerland – The World Trade Organization has received a complaint filed by the Peoples Republic of China on the European Union’s new rules for determining dumping practices. These new rules could mean that the 48.5% anti-dumping duty now in place for China made bikes exported to the EU member states will not end by 2018.

China Files Complaint on EU’s New Anti-Dumping Rules
WTO’s Dispute Settlement Body is to rule on China’s complaint. – Photo WTO

China’s complaint specifically addresses the European Union’s new method for calculating whether dumping is taking place.

Legal basis of the complaint

The World Trade Organization (WTO) published a document on the complaint filed by China. It is named “European Union – Measures Related to Price Comparison Methodologies; Request for Consultations by China.” This document is published on this webpage.

On the legal basis for the complaint by China, this document says, “When China acceded to the WTO, China and other WTO Members agreed that, for a transitional period of fifteen years, China-specific treaty provisions would apply to the determination by other Members of certain elements of “price comparability” in anti-dumping proceedings involving Chinese imports. WTO Members were, subject to certain conditions, exceptionally permitted to use a methodology not based on a strict comparison with domestic prices or costs in China. That transitional period ended on 11 December 2016. Accordingly, from that date, the WTO rules that govern the determination by WTO Members of all elements of price comparability now apply to imports from China. However, the European Union continues to determine normal value on the basis of a special calculation methodology unless the producer establishes that it meets certain criteria. Thus, the European Union is in violation of its international obligations.”

Mexico for price comparability

In various dumping investigations the European Commission has chosen for Mexico on price comparability. Also for the newest anti-dumping ruling dated 5 June 2013 Mexico was considered to be “an appropriate analogue country.”

According to China the EU is with that since 11 December 2016 breaching its international obligations. Whether this means that the in 2013 for a five year period renewed anti-dumping ruling on in China made bicycles that are exported to the EU is now regarded illegal remains the question. The WTO’s Dispute Settlement Body is to rule on that.

Market Economy status

That same body is to rule on China’s complaint of the new rules that the European Union is to take on. What comes into play here is also whether the European Union regards China as a Market Economy. That is not the case as this trade journal reported earlier.

For previous Bike Europe publications on the European Union new methods for calculating dumping see here.

On this page we also publish the full WTO document on China’s complaint.

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