Is the Commission's Solution to the 'China MES' Problem Really a Solution?

20-07-2016

Following the EU Commission0s announcement that it will no longer single out China when conducting anti-dumping investigations by using an extraordinary method for calculating dumping margins, Christian Ewert, FTA’s Director General said “On the one hand it is heartening to hear that the Commission intends to do away with its discriminatory practice when conducting anti-dumping investigations against China. On the other, it seems to me that although the new proposal is not discriminatory in letter, it will be discriminatory if in practice it only applies to China.

FTA understands the view of EU producers, who say that China is not a market economy and as such should not obtain such status by default and the view that applying the usual method of dumping margin calculation will most likely result in lower anti-dumping duties – perhaps no duties at all. However, we also believe there are ways in which this impact can be mitigated. Firstly it is important to understand that anti-subsidy investigations will be unaffected. Second, it is possible for the EU to use a method similar to that used in investigations against Russia or use adjustments when calculating the dumping margin.

To read the full press release click here.

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