The Legality Of The Anti-dumping And Countervailing Measures Against RBM Exchange Rate Under WTO Rules

Nowadays, Global trade keeps on developing in a fast speed, and with theincrease of trade volume, trade friction happens more frequently as well. Chinaespecially becomes the serious victim under some other countries’ trade protectionmeasures, which usually with the performance of a large number of anti-dumping andcountervailingaccusations and unilateral anti-dumping and countervailing actions. Inrecent years, the RMB exchange rate has become a new issueby United States andother western countries to take another round of trade attack against China. Theyclaimthat China has the undervalued RMB exchange rate, through which to dumpcommoditiesin foreign markets, or because of governmental subsidies to China’sexport products, an unfair competitive advantage arises in the international market.The situation above results in severe damage to the import country market, which iscontrary to the obligations of China as the world trade organization members shallcomply with, and violatesthe "Anti-dumping Agreement" and "Agreement onSubsidies and Countervailing Measures" under WTO rules.The subject of this paper is whether the fact that the dumping or subsidies of theexchange rate system of China exist as the United States of America claimed or not.The author makes a deep analysis on the "Anti-dumping Agreement" and "Agreementon Subsidies and Countervailing Measures"based on the related theory system ofinternational treaty law, and with the comprehensive use of comparative analysis method, hermeneutic method.And then, the author puts forward some correspondingmethods and issues that should be paid attention to in the accuse against the UnitedStates of Americaand other countries.This paper consists of the following three parts:The first part mainly introduces the background of RMB exchange rate disputeand the relevant international organizations that regulate the exchange rate issues ofmembers. In this part, the author focuses on the allegations and measures taken fromAmerican Society for the RMB exchange rate issue of dumping and subsidy, and thenthe author discusses the regulations and cooperation between two importantinternational organizations-International Monetary Fund (IMF) and the World TradeOrganization (WTO and GATT). Besides,the author also put up her opinion onWTO’s jurisdiction as the basis of the following discussion.The second part is the main part of the paper, after the jurisdiction confirmed,theauthor analyseswhether Chinese export products to the United States and othercountries comply with dumping and subsidies based on the current RMB exchangerate system under WTO rules. This part mainly explains "Anti-dumping Agreement"and "agreement on subsidies and countervailing", using general rule ofinterpretationof international treaty, combining with theory and practice, and finallydraws a conclusion.The third part is the expansion of the second part. It makes further summary ofthe conclusion, and explains why the United States of Americaand other countriestreat China as a threat as her economic rise and keen to take various measures to curbherhigh-speed developing global trade. And then the author put up some waysincluding domestic and international ways as the respond to the charge according tothe characteristics of DSU, in order to occupy a favorable position to solve these tradedisputes.