Anti-Dumping Investigations Against China in Latin America
44 Pages Posted: 23 Feb 2010 Last revised: 15 Jul 2013
Date Written: February 1, 2010
China has always been the prime global target of anti-dumping (AD) investigations, and this trend has continued throughout the current economic and financial crisis. As most of the heavy-weight AD users still treat China as a non-market economy (NME), special rules apply to the calculation of the normal value of its export goods, resulting in high dumping margins and making AD law a potential instrument of trade protectionism. Given that Latin American countries, if taken together, initiate more AD investigations and adopt more final measures against China than any other jurisdiction in the world, it is surprising how little attention their approach to China has received in academic research.
This article is intended to fill this gap. Its primary focus is on two legal aspects of AD law: The provisions that lay down the criteria for what constitutes a market economy and the methods used to calculate normal value in cases where goods are imported from a NME. It sets out the NME issue in the law of the World Trade Organisation (WTO) and explains why this framework and the relevant AD provisions enacted in individual member states are disadvantageous for China. An overview of the economic relations between China and Latin America and China’s diplomatic efforts to gain Market Economy Status (MES) from Latin American countries is given, and the development of AD action by the five most active Latin American AD users against Chinese exports is traced and interpreted. The subsequent core study on the NME treatment of China in AD investigations in Latin America is centred on the two above-mentioned aspects of law, describing how Latin American jurisdictions deal with imports from NME countries and how Chinese producers and exporters defend themselves in AD investigations.
Keywords: anti-dumping, World Trade Organization, international trade, Latin America, China, WTO, Argentina, Brazil, Colombia, Chile, Peru, Venezuela, Mexico, dumping, IBA
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