Thursday, July 21, 2016

Olivier Prost: “Europe needs effective anti-dumping instruments to defend themselves. ” – The echoes

What question arises in terms of trade law?

In general, it is considered that there is dumping when we see a country or company exporting products at a lower price to those prevailing on its own market. But when the market is itself highly distorted, this method may not work, because domestic prices may themselves be artificially low. During the fifteen years following the accession of China to the WTO, we could avoid this questioning because it is not considered a market economy, we can apply to it the method called “country similar “. Instead of taking as an internal reference price to China, we choose the one that was practiced in a third country. It is the possibility of this method, which, in China, disappears at the end of the year. In this case, the Commission should find another way to take into account possible distortions that exist in this country. Otherwise, what should be considered dumping disappear as “shrinking” in the calculations as fast as employment in the European industry.

The “toolbox” of the rules of the AD does she not offer solutions like this?

it’s true that there are opportunities to make some adjustments for distortion. The problem is that this capacity adjustment is currently the subject of several disputes in the WTO. One of them, especially on biodiesel, has resulted in a “panel” which is to say, totally absurd that while the cost of raw material is recorded in the accounts of a society, it must be a reference in the calculation of dumping, regardless of the possible distortions which he was the object. This decision is currently under appeal before the Appellate Body of the WTO and it is hoped that the members of this body will return to reason. Especially if a simple adjustment was necessary in a case concerning market economy countries (Argentina and Indonesia) is a fortiori the case for an economy like China.

This type of adjustment does not he devote the return of protectionism in disguise?

We must stop with perpetual suspicions protectionism regarding the use of EU trade defense instruments such as anti-dumping. These instruments are the only existing disciplines at the international level to enforce competition. Have you an idea, when the German competition authority condemned a French company for predatory pricing, to challenge German law? On the contrary, instead of being suspicious for some to advocate a culture of secrecy for others, we must recognize the usefulness of these instruments and assert that they should be effective quickly. Put simply and clearly demonstrate that the European Union has successfully reins to handle international competition, would help the EU to progressively regain the confidence of the people.

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