A Study On Anti-dumping Of International Trade

As the most frequently used trade remedy method in the WTO system, anti-dumping has been in existence for over 200 years. With increased international trade, saturated world market, decreased tariff level and imbalanced economic development, the anti-dumping trade frictions among world nations has intensified. Particularly since the 1990s, the anti-dumping in the world trade frictions have been on the rapid rise. The worldwide an-tidumping disputes have escalated. Anti-dumping has become an important issue of international trade, which draws attention from the international community. During this period, the number of anti-dumping cases that China has been facing increased not only in number and frequency but also become more targeted and discriminative. Since its entry into WTO, China will be confronted with new anti-dumping challenges owing to the less functional government, under developed market system and inadequate use of the dispute settlement mechanism with WTO. This thesis focuses on the study of anti-dumping issue in the international trade, outlining its theories and probing into its core concept. It also makes suggestions in response to the anti-dumping issue by analyzing its actuality that China currently faces, from the government level and levels of the chamber of commerce and associations as well as enterprises.The thesis is composed of Introduction, Chapters 1-9 and Conclusion.The Introduction indicates the necessity of studying the anti-dumping issue in the international trade; analyzes the status of the domestic and overseas studies of the issue and thereby clarifies the theoretical and practical significance of the thesis'subject. Having enumerated the ways of thinking and research as well as the main points and structure, the thesis illuminates the major innovations and contents worth further elaborations.Chaper 1 Introduction explains the conception and definition of the word dumping by indicating its dual economical and legal meaning. From different perspectives, the thesis differentiates dumping as discontinuous and continuous dumping, technical and monopolized dumping as well as price and numerical dumping. Based on the definition of the dumping conception and connotation, the thesis makes a further description anti-dumping's conception by elaborating in details on the formulation of regulations, legal premise, basic procedures and behavioral characters.Chaper 2 Summary of Theories points out that dumping and anti-dumping are based on free trade and trade protection theories. To free traders, economic maximization is the goal to achieve, which conforms to the ultimate principle of economic interest. For over 200 years, the free trade theory has been widely accepted. However, the theory is now in a dilemma in the trading practice. While advocating free trade, more nations have set up trade barriers. Trade protectionism came into being in the middle of the 16th century. It has evolved into 4 stages, i.e. mercantile system, infant industry protection, Keynesian theory and strategic policies. Generally, all these 4 stages are based on the tenet of the protection and increase of one nation's economic interest, advocating trade from the national instead of international perspective. This reality reflects the universal application of modern anti-dumping practice, one that is not totally targeted at the unfairness in international trade but instead becomes a major instrument of modern trade protectionism.Chaper 3 Origin and Evolution historically reviews the origin and evolution of dumping and anti-dumping. Dumping originated from the mid 15th century and evolved itself till mid 18th century, a period which embodies the nature of mercantilism. In the period from the mid 19th century to the start of the World War I, the international monopolies prevailed and dumping increased fast. Changes happened to dumping during and after the WW II. Anti-dumping came into being right after dumping but not become legal during the period from 16th century to the end of 19th century until early 20th century that officially lifted the curtain for anti-dumping. Since the 1970s, anti-dumping has seen fast, world-wide development.Chaper 4 Analysis of the New Characteristics of contemporary anti-dumping starts by analyzing the new characteristics of the international anti-dumping movement since the1980s, particularly since the establishment of WTO in 1995, reckoning that contemporary anti-dumping embodies 5 characteristics, namely global scale, more frequent operation, decentralized products, reinforced intensity and severity of its consequence. Next, for the causes of the characteristics of the contemporary anti-dumping practice, the analysis focuses on globalization of the world economy, nations'increasing attention to their national interests and economical safety, diminished tariff barrier and strengthened non-tariff barriers as well as its inherent characteristics. Lastly, the chapter analyzes the trend of contemporary anti-dumping and concludes that it will continue to affect the development of international trade and become more standardized, with the numerical anti-dumping being a new mode internationally.Chaper 5 Cost–Benefit Analysis of Anti-dumping starts by analyzing the cost side, including primarily the negative effect the anti-dumping caused to the protection of the industry in the importing nations, the loss of consumers'interest in an importing nation as well as the cost for the establishment and maintenance of anti-dumping, followed by an analysis of its gains arriving at a conclusion that the major gains anti-dumping attained come from a guaranteed macro-economic balance of the importing nation, its boosted industrial restructuring and orderly market competition. From an economic perspective, the chapter also analyzes the cost-benefit ratio of anti-dumping by adopting the comparative analysis methodology to analyze anti-dumping taxes. Lastly, based on all the above analysis, the chapter expounds the options for the nations with distinct political and economic conditions.Chaper 6 Analysis of American Anti-dumping Policy towards China describes that United States, as the world's only super power, is traditionally an anti-dumping country. Since the 1980s, America's anti-dumping actions aimed at China show the following characteristics: Increased number of anti-dumping cases; Intensified their anti-dumping efforts; Relatively centralized product structure; Demonstration effect in the international market.The thesis analyzes the major causes behind those characteristics, they are: America's substantial trade deficit with China; America's determination of China's"non-market economic country"status puts it in unjust position when dealing with anti-dumping issue toward China; U.S. uses unreasonable prices in calculations in anti-dumping cases; U.S. rarely considers quality-price ratio of the exported Chinese products; U.S. anti-dumping measures against China are obviously discriminative.Lastly, the chapter introduces U.S. anti-dumping supervisory institutions and its corresponding legal procedures.Chapter 7 Analysis of EU Anti-dumping Measures towards China indicates that the anti-dumping measures taken by the EU, the first region that initiated anti-dumping issue against China, are characterized by the followings: China is the first anti-dumping target of EU; Anti-dumping efforts by EU are intensified; Their product structure in anti-dumping cases against China is obviously protective; This anti-dumping effort is durative and interlocking.The thesis concludes that the root causes for the emergence of the above-mentioned characteristics are: the difference in social systems leads to the discriminative anti-dumping measures against China; EU east expansion leads to a tremendous increase in numbers of its anti-dumping cases against China; Zero magnitude calculation makes an anti-dumping case against China very easy to establish; China is not strong enough to counter claim the EU anti-dumping case.Lastly, the chapter describes EU's anti-dumping supervisory institutions and its corresponding legal procedures.Chapter 8 Analysis of Japanese and Korean Anti-dumping Measures towards China starts by summarizing the status and characteristics of Japanese anti-dumping moves towards China, which shows two major developments: As Sino-Japanese trade frictions intensifies, more Japanese anti-dumping cases will be expected; As Sino-Japanese trade relations has seen improvements in recent year, China's active position in the trade frictions between the two countries will refraining the Japanese anti-dumping moves against China.As for Republic of Korea, the initiator of most of the anti-dumping cases in East Asia region, the cases are characterized by the relevant industrial conflicts between the two countries. As the trade relations develop, the number of anti-dumping cases put forward by Korean side will see a continuous increase. However, the anti-dumping measures will only be taken in a refrained manner, due to the wide supplementary and cooperative relations.Lastly, the chapter introduces the anti-dumping supervisory institutions in Japan and Republic of Korea as well as their corresponding legal procedures.Chapter 9 describes the anti-dumping reality in China and the policy recommendations. Since China's opening up to the outside world, as the nation's economy and foreign trade have been continuously developed, China is now facing an increasingly harsh anti-dumping situation because (1) China has become the major international anti-dumping target; (2) China has been unfairly treated in anti-dumping moves; (3) U.S. and Europe are playing the major role in the anti-dumping moves; (4) the Latin American countries and other developing countries follow suit in the anti-dumping moves and (5) anti-dumping moves have become a an important weight used by multinational corporations designed to counterbalance the shock brought by the Chinese products. The situation was created by both inherent and outside factors. Therefore, the thesis puts forward the policy recommendations as follows: Government and relevant departments should play an active and functional part; Chamber of Commerce and industry associations should act as an organizer and coordinator; Export enterprises should give full play to their initiatives.