Granting Market Economy Status to China: An analysis of WTO law and of selected WTO members' policy

10-11-2015

Under Section 15 of the Chinese WTO Accession Protocol, China can be treated as a non-market economy (NME) in anti-dumping proceedings. The definition of China as a NME allows importing countries to use alternative methodologies for the determination of normal values, often leading to higher anti-dumping duties. The correct interpretation of Section 15(d) of the Chinese WTO Accession Protocol has come under debate, as well as whether the latter section stipulates the automatic granting of Market Economy Status to China after December 2016. This analysis looks at the debate regarding the interpretation of Section 15(d) and the current policy of selected WTO members with respect to China's Market Economy Status.

Under Section 15 of the Chinese WTO Accession Protocol, China can be treated as a non-market economy (NME) in anti-dumping proceedings. The definition of China as a NME allows importing countries to use alternative methodologies for the determination of normal values, often leading to higher anti-dumping duties. The correct interpretation of Section 15(d) of the Chinese WTO Accession Protocol has come under debate, as well as whether the latter section stipulates the automatic granting of Market Economy Status to China after December 2016. This analysis looks at the debate regarding the interpretation of Section 15(d) and the current policy of selected WTO members with respect to China's Market Economy Status.