Sunday, November 27, 2011

"In EU trade-defence law (antidumping and anti-subsidies), there is provision for different treatment between those exporting countries which are considered to have the status of being a market economy and those which are not. If a country does not have market-economy status it is easier to construct the normal value of the exported goods. The constructed normal value will normally be based on costs and prices from outside the exporting country and thus are likely to be higher. This means that when the comparison is made between the normal value and the export price the level of dumping is likely to be higher."

those are rules that make market status key

is china a market system or non market system???


" WTO rules  allow national authorities to take into consideration
 the non-comparability of costs and prices
 when the exporting country is
                                                     not a market economy

or where the exporting economy is distorted in some way."



euro anti dumping  rules :

"Does the government influence the operative decisions of firms or are they made in response to market signals?

Does the legacy of the command economy, in terms of public ownership, barter trade and so on, affect firms' operations?

Do firms have effective accounting standards?

Do firms operate under an effective framework of bankruptcy regulation and property-rights protection?

Do firms convert currency at standard market rates?"


the time to use market economy status  as  leverage  on china's trade assault is .....NOW