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Prospects Of Terminating The NME-Methodology In Chinese Antidumping Cases: The Challenge Ahead

Posted on:2017-08-09Degree:MasterType:Thesis
Country:ChinaCandidate:Y H ZuoFull Text:PDF
GTID:2346330542471685Subject:International relations
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Dumping and antidumping have long been subject to controversy.In China's WTO Accession Protocol,paragraph(d)stipulates that subparagraph(a)(ii)shall expire 15 years after the date of Accession.As the expiry date is coming soon,this sunset clause has divided opinion over its legal interpretation.This thesis begins with this issue,and proceeds to address it analytically through the lens of major schools of thought,such as "automatism," "under the national law,""shifting of the burden of proof," and the like.Based on the analysis undertaken,the proposition arrived at is that it is legally justifiable to terminate the NME(non-market economy)-methodology.Borrowing "level of analysis" framework from political science,this thesis transforms the general rule and supplementary means of interpretation,as stipulated in Arts.31 and 32 of Vienna Convention on the Law of Treaties 1969 to three levels,namely,textual analysis,contextual analysis,and object-purpose analysis.Based on these three levels of analysis,this thesis holds that it is the NME-methodology(surrogate country methodology)that expires 15 years after the date of China's accession.In essence,NME-methodology is an exceptional methodology in price comparability,which authorizes Members to temporarily derogate from normal methodologies.WTO Appellate Body's ruling in the EC-fastener case also confirms that NME-methodology is special and temporary in nature,which would be beneficial to China's pleadings.As for the economic impact of NME-methodology,this thesis adopts a quantitative and comparative approach by examining two key evaluative dimensions,that is,affirmative ruling probability of antidumping investigations and antidumping duty level.Comparatively speaking,China is far above the average rate of Member states in terms of these two facets.Therefore,it is predicted that these two indicators would fall down substantially once NME-methodology is terminated.Such an outcome would favor of Chinese exporters and their customers as well.According to the latest observation,the U.S..and the EU have refused to acknowledge China's market economy status.The EU has tried to adopt a new "non-standard methodology." The corollary is that China needs to unify its position and fight for its WTO rights.The Russian precedence illustrates that receiving market economy status does not mean that the EU and the U.S.treat market economies and transitional economies equally.Russia's appeal to WTO Dispute Settlement Body,to some extent,previews what would happen if China follows the similar path.In conclusion,this thesis summarizes major arguments and positions from the point of view of China,the EU,and the U.S.In light of the analysis undertaken,this thesis suggests that the Chinese government should formulate and present its pleadings lawfully and reasonably,and urge Member states to fulfill their WTO commitments.China should take full advantage of WTO rules,accumulate experience in international lawsuits,and apply multiple diplomatic instruments for wider international support.The opposition of the EU and the U.S is primarily rooted in concerns with increasing unemployment at home and overproduction in China.In any event,the expiry of the sunset clause will bring change in its wake.The exact nature of that change,however,will be revealed soon.
Keywords/Search Tags:Sunset Clause, Price Comparability, NME-methodology, Crossdisciplinary Perspectives
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