A European Union flag flies in Gibraltar on March 28, 2017. Members states of the EU on Dec 4, 2017 adopted new anti-dumping rules with "market distortion approach" at its core. (JORGE GUERRERO / AFP)
BRUSSELS – The European Union (EU) member states on Monday adopted its new anti-dumping rules with "market distortion approach" at its core.
The new EU anti-dumping law that grants separate treatment for imports under "significant market distortions" is not compliant with WTO rules
Ministry of Commerce, China
The new legal framework removes the former distinction between market and non-market economies for calculating dumping while maintaining the same level of protection for producers, an EU statement said.
The Commission will now need to prove the existence of a "significant market distortion" between a product's sale price and its production cost.
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The Commission will also draft specific reports on countries or sectors describing distortions. In line with current practice, it will be for EU firms to file complaints, but they will be able to use the Commission's reports to support their case.
In November 2016, the European Commission proposed a non-exhaustive list of examples to be used to identify significant market distortions, unlocking its campaign to replace its "surrogate country" approach with "market distortion."
The European Parliament on Nov 15 endorsed the new rules by 554 votes to 48.
Chinese Ministry of Commerce (MOC) said the European Union's new anti-dumping law that grants separate treatment for imports under "significant market distortions" is not in compliance with World Trade Organization (WTO) rules.
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The concept of "significant market distortions" is not stated in the WTO rules, while there are no rules regarding "social and environmental dumping," the MOC said in an online statement.
The move is therefore groundless and will cause "serious damage" to the WTO's anti-dumping legal system, and has already been questioned by many WTO members, including China, according to the statement.
The new regulation is expected to enter into force on Dec 20.
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