Page 10 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.76, # 1, 2019, pp. 4-19

(a) Between 1995 and 2014, the EU has launched 99 AD (Anti-Dumping) initiations
against China, constituting 28% of the total.
(b) AD activity actually increased following China’s WTO accession in 2001.
(c) At the end of 2014, the EU had 51 AD measures in force against China (47% of
total), affecting less than 2% of bilateral imports. This puts the EU at third place,
behind the USA (93 measures in force, 38% of total) and India (76 measures, 37% of
total).

Moreover, according to the INTA Report (June 2016), the EU uses trade defence
instruments (TDIs) less than many other jurisdictions, and only 0.21 % of EU
imports are affected. China has been by far the main target of AD duties imposed by
the EU. By October 2016, definitive AD duties against more than 50 different
Chinese products were in place. AD duties against Chinese products concern mainly
the aluminium, bicycles, cement, chemicals, ceramics, glass, paper, solar panels and
steel industries. In most of them China has accumulated massive over-capacity.

The report explains also that AD measures are prevalent over the AS (Anti-
Subsidize) measure toward China. By October 2016, definitive AS duties were in
place for five Chinese products. This is mainly due to the opacity of the Chinese
subsidisation scheme and the lack of cooperation of the Chinese authorities.

In addition, AD measures are not equally applied across all industries within the EU. They
are concentrated in the steel and chemical industries (Independent report for EP, February
2016). China’s comparative advantage could stem from a genuine cost advantage of
Chinese producers. On the other hand, it might stem from dumping activity. Preliminary
evidence suggests that similar patterns exist in other countries (Ibid).

2.2 The Institutional process to issue new trade defence regulations
 May 2016: the EP adopted a resolution on China’s market economy status.
Overwhelming opposition of Member of European Parliament (MEPs) to grant
MES to China as long as it did not meet all five EU criteria (The European
Parliament includes the five market economy criteria in 2008/2009 with the definition of
significant distortions, in line with what the US does. This is key to justify the use of a non-
standard methodology. However, not only the criteria to define a “market economy” is not
recognized internationally, but also it is not acceptable in relation to China’s accession protocol
in the WTO.). The EU should use a non-standard methodology in AD and AS
probes into Chinese imports in determining price comparability.

 June 19 2016: the EP called on the Commission to submit a proposal along
these lines.

10