Research On The Competition Policy And Antidumping Rules Under The Framework Of WTO

In the framework of WTO, the rules of anti-dumping has already constituted a integrate system. From GATT VI to Antidumping Agreement, the rules of antidumping have been changed from theory to the practical provisions which can be applied in the area of the determination and the remediation of antidumping. In the mean time, antidumping law contributed a lot to restraint the unfair price competition and the transnational dumping activity. Nevertheless, the defects of antidumping law were exposed along with the increasing of the application of the antidumping rules nowadays. As a tool of competition, dumping will not hurt the fair competition inevitably. Cycling dumping and sporadic dumping, which have the proper economic reason, always promote the competition as a commercial tactic. Only predatory pricing has the possibility to control the market by price reduction. The economic theory, however, is opposite to the practice of antidumping. Accordingly, antidumping law is frequently used as an implement of trade protectionism. Simultaneously, the theory of competition became a veil of protectionism. This conclusion can be drawn from the increasing number of antidumping investigations and the fact of some cases.Essentially, the aim of antidumping law is to protect the fair competition, which is consistent with the internal antidumping policy. Competition law and antidumping law have been divided into two independent branch of law. The former is constructed on the basic that market mechanism will harm the mechanism of competition to some extent, which will result in the monopoly, the restraint of competition and the unfair competition. In order to secure the microcosmic operation of the market, it targets for the harmful competition activities, the irrational market structure and promotes the economic development. Moreover, the latter, antidumping law, which is the lawful safeguard in world trade, is aimed at illegality of the dumping activities. It is treated as an unfair commercial activity, since it strikes the relevant corporations which lack of competition ability on the prices, and damages the existence, development of these corporations ultimately. Consequently, antidumping law is a necessary method to protect the internal industry properly.Nevertheless, the fundamental theory of competition policy and antidumping law would supplement each other, both in the field of international trade and the general circumstance of free trade which is advocated by WTO. These two implements are aimed at protecting and promoting fair competition. The market barrier and the damage to the market could be eliminated, in order to improve the efficient allocation of resources, increase the welfare of the customers, and maximum the welfare of nations. However, there are some differences between them. Antidumping rules target for the unfairness for the domestic manufacturers and domestic industries caused by improper importation. For instance, the direct competitive manufacturers are enforced to exit from the market because of the inferior position of the price, and the relevant industries will be damaged. Unlike the antidumping law, the crucial aim of competition policy is the market mechanism, and how to maintain the system of fair competition, instead of individual manufacturer or industry.Due to foregoing characteristics of anti-dumping regulations, the local government could take it as a protective tool for the domestic industry during its implementation. Academicians believe it is the congenital drawback of anti-dumping theory. Under the framework of the WTO, the normal international trade of the developing countries had been affected greatly by the increasing numbers of anti-dumping investigations, which had brought more and more voice on challenging the anti-dumping theory. Under the general circumstance, it is contentious that whether antidumping law should be brought into the framework of competition law, not only in the internal legal system, also in the laws of WTO. The radical opinion is to abolish the antidumping rules, substituting with competition law, in order to accomplish the fairness integrally and individually. But how to set forth the integrate competition rules is still a severe problem.This paper researches the basic provisions of the antidumping rules and the basic content of competition policy within the WTO framework. On the basis of these two issues, it seeks coordination of these two implements within the WTO framework from a macroscopically perspective. Finally, some suggestions about the negotiations in this topic for China are put forward. Therefore, this paper is divided into four parts.The first part discusses the WTO antidumping system. Firstly, it introduces the basic concept of dumping and explains the essential meaning of dumping. Secondly, in the historical perspective, I try to introduce the history of the legislation of antidumping law briefly, the construction of the system and point out that the history of antidumping law. Thirdly, focusing on the antidumping rules, the specified provisions of antidumping laws and the procedure of antidumping investigation are analyzed deeply. Finally, it analyzes the existing defects of antidumping law practically.The second part discusses the competition policy under the WTO framework. Firstly, it gives the basic definition and clarifies the relationship between competition law and competition policy. Secondly, from the perspective of international harmonization on international competition policy, it introduces current situation and the trend of the competition policy, and draws a conclusion that it is possible to get the international harmonization of competition law under the WTO framework. Thirdly, the author examines the existing legal system of WTO, and lists the provisions relevant to the competition policy, in order to illustrate the legal basic of harmonization in the field of competition law.The third part of this paper examines the confliction and the harmonization between the competition policy and the antidumping regulations. First of all, on the basis of researching on the provisions which are related to the topic of WTO trade and competition policy, the relationship between trade policy and competition policy will be explained. They are likely to have the same purposes and contribute to each other. Furthermore, at the same time there are a few of conflicts and differences between them, such as social value and effective performance. Finally, having considered the relationship in theory, the best practical mechanism at the present time in term of the coordination between trade and competition policy will be discussed, by means of reviewing the main three strategies bSome tactics for our negotiation in the area of trade and competition policy will be employed in the fourth part. On one hand, the different opinions on behalf of different interest groups will be mentioned. The reasons for these points will be expressed as well. On the other hand, some suggestions would be put forward on our negotiation strategy considering the practical domestic situations which are embodied by the positions of other members.