The European Union (EU) member states on Monday adopted the union’s new anti-dumping rules with “market distortion approach” at its core.
“The new legal framework removes the former distinction between market and non-market economies for calculating dumping while maintaining the same level of protection for producers.
“The Commission will now need to prove the existence of a significant market distortion between a product’s sale price and its production cost.
“The Commission will also draft specific reports on countries or sectors describing distortions,’’ an EU statement said.
According to the statement, in line with current practice, it will be for EU firms to file complaints, but they will be able to use the Commission’s reports to support their case.
In November 2016, the European Commission proposed a non-exhaustive list of examples to be used to identify significant market distortions, unlocking its campaign to replace its “surrogate country” approach with “market distortion.”
The European Parliament on Nov. 15 endorsed the new rules by 554 votes to 48.
Chinese Ministry of Commerce (MOC) said the EU’s new anti-dumping law that grants separate treatment for imports under “significant market distortions” is not in compliance with World Trade Organisation (WTO) rules.
“The concept of significant market distortions is not stated in the WTO rules, while there are no rules regarding social and environmental dumping,’’ the MOC said in an online statement.
According to the statement, the move is therefore groundless and will cause serious damage to the WTO’s anti-dumping legal system, and has already been questioned by many WTO members, including China.
The new regulation is expected to enter into force on Dec. 20.