The integration of nonmarket economy countries into the international trading system

This study examines and evaluates the international economic and trade law of the General Agreement on Tariffs and Trade (the "GATT") and the trade laws of the United States of America as they are applied to nonmarket economy countries. Chapter 1 examines the economic principles underlying market and nonmarket economic systems and emphasizes the need for the integration of the nonmarket economy countries into the international trading system. Chapter 2 analyzes the treatment of nonmarket economy countries under the GATT. Chapter 3 discusses the trade laws of the United States regulating nonmarket economy imports, using the trade relationship between the People's Republic of China and the United States as a vehicle for addressing the broader issue of the integration of nonmarket economy countries into the international trading system.; The study also presents proposals to change GATT and United States trade laws applicable to nonmarket economy imports. The study proposes the repealing of the antidumping and countervailing duty laws of the GATT and the United States and the adoption of an injury-based approach. The study suggests that the different treatment of nonmarket economy imports under the existing laws be abolished and a unitary body of revised safeguard law be applied to both market and nonmarket economy countries. The study argues that as a second best solution the antidumping laws of the GATT and the United States should at a minimum be amended to apply only to predatory dumping. Moreover, the study supports the adoption of the policy of "benign neglect" toward subsidies with respect to the countervailing duty law of the GATT. In addition, the study suggests that if the United States Congress determines to retain the different treatment of nonmarket economy imports under the antidumping law, the Congress should at a minimum create an intermediate category of economic systems that would accommodate the increased market orientation of a number of nonmarket economy countries.