TABLE OF CONTENTS FOREWORD 3 CONTENT 3 I Analyze the anti dumping measures in the Anti dumping Agreement (ADA) 3 1 Anti dumping measures 3 II Example of WTO case law regarding anti dumping measures 5.
Trang 1TABLE OF CONTENTS
FOREWORD 3
CONTENT 3
I Analyze the anti-dumping measures in the Anti-dumping Agreement (ADA) 3
1 Anti-dumping measures 3
II Example of WTO case law regarding anti-dumping measures 5
1 Summary of the lawsuit 5
2 Observe: 6
CONCLUDE 8
Trang 2In the face of the need to maintain a fair and healthy competition, the World Trade Organization (WTO), from its inception, has had basic anti-dumping
regulations, with the meaning of being a trade room tool for member states In the context of deep integration, it is essential to grasp from reasoning to regulation and anti-dumping practices within the WTO framework So, to better understand the anti-dumping measures in the Anti-dumping Agreement (ADA) Takeone example
of WTO case law regarding anti-dumping measures and review it"
I would like to sincerely thank you!
CONTENT
I Analyze the anti-dumping measures in the Anti-dumping Agreement
(ADA).
1 Anti-dumping measures.
a Anti-dumping duties
As stipulated in Article 9 of the ADA, anti-dumping duty is an additional import tax of the importing country applicable to goods dumped with the aim of preventing the continuation of such dumping in order to avoid causing damage to the manufacturing of similar products in the country The anti-dumping
investigation agency will decide the anti-dumping tax rate on the basis of the
dumping margin, on the principle that this tax rate may be equal to or less than the dumping margin
The investigating agency will determine the spread of dumping and the anti-dumping duty rate separately for each manufacturer and exporter In case the
number of producers and exporters is too large to calculate the dumping amplitude alone, the authorities will consider the limit in certain producers and exporters, on the basis of exchanges with relevant manufacturers and exporters and the tariff
Trang 3rates on imports from manufacturers, Exports must not be investigated not to exceed the tax rates of investigated producers or exporters
In case the exporting country refuses to cooperate in providing information for the investigation process, the dumping investigation agency of the importing country on the basis of the self-collected information collected in combination with the information given by the plaintiff will decide the dumping margin and the applicable tariff rate
b Commitment measure
Commitments on measures to exclude dumping by organizations and
individuals producing and exporting goods are required to apply anti-dumping measures to competent state agencies applying anti-dumping measures or to
domestic producers if approved by competent state agencies
As set out in Article 8 of the ADA, the investigation may be stopped or concluded without the application of provisional measures or anti-dumping duties,
if the exporter voluntarily commits to increase the price or stops the export of dumping to the market under investigation and is agreed by the investigating
authorities that this measure will remedy the damage Price increases are not
necessarily greater but usually smaller than the dumping margin if enough is
enough to repair the damage to the domestic manufacturing industry
The investigating body will not allow producers and exporters to commit prices if they find the commitment unfeasible, such as the number of exporters is too large
The investigating body may ask the exporter to commit to the price but is not required to commit The relevant authorities of the importing country may require any exporter to accept the price commitment to provide periodic information on the implementation of the price commitment In case the exporter violates the price
Trang 4commitment, the investigating agency may immediately apply temporary measures
on the basis of the information they have
c Temporary measures
As stipulated in Article 7 of the ADA, before applying tax measures, the measure of price commitment of the investigating agency may apply temporary measures in the form of: tax; deposit the amount equivalent to the expected anti-dumping tax; for customs clearance but reserve the right to tax and clearly state the normal import tax rate and anti-dumping tax rate The expected price applies
II Example of WTO case law regarding anti-dumping measures.
The case between India and the European Economic Community (EC) – Linen and cotton bed sheets.1
1 Summary of the lawsuit.
In 1998, India requested consultations with the European Commission (now the European Union) on the import of linen and cotton sheets from India that were subject to official anti-dumping duties of between 2.6% and 24.7% India considers that the Commission has behaved contrary to the provisions of the ADA articles such as: Article 2.4.2 "zeroing"; Article 2.2.2 (ii) on how to calculate the full profit; Article 3.4 on material damage, Article 15 on giving special attention to developing countries However, the Commission argued that the above provisions had run out
of force in 1997, that no anti-dumping duties had been collected and rejected
India's addition of the requests to the first written complaint submitted to the Panel
After the settlement process at the panel, and then the appellate body at the request of the EC's appeal, the final conclusion of the DSB – the WTO's Dispute Settlement Body confirmed that the dumping duty measure imposed by the EC on
1 European Communities – Anti – Dumping Duties on Imports of Cotton type Bed Linen frim India, Panel Report, WT/DS141/R, 30 October 2000.
Trang 5cotton bed linen imported from India did not comply with the ADA, Specifically, violated the following terms:
Article 2.4.2 ADA: due to the use of zening method, in which, attributing to
0 negative break amplitudes when the province calculates the false break margin for products of different types
Article 3.4 ADA: due to the failure to adequately assess the factors causing damage if in this provision and the use of information from manufacturers not in the relevant domestic manufacturing industry
Article 15 of the ADA: by not considering the possibility of applying other constructive measures that should have applied to India as a developing country
2 Observe:
At the same time, through the practice of resolving anti-dumping disputes through the WTO mechanism has contributed to ensuring the rights of the parties
At the same time, through the practice of resolving disputes on anti-dumping in the case of the EC - India has clarified more clearly some provisions of the ADA:
Firstly, on the issue of the use of zeroing method in the boundary of
dumping: In the process of determining the margin of false destruction with Cotton bed linen of India, the Ec has calculated the dumping amplitude for each different type of product by bringing the export price of each type of product compared to the usual price the average family name of that type of product; then factor these results together to give a dumping margin for the product as a whole However, for those types of products that result in negative dumping amplitudes (i.e., export prices are higher than normal prices), the EC does not use these negative values but transfers them to zero (as if ignoring transactions without dumping)
Accordingly, when compiling all the dumping amplitudes of each product type to determine the dumping amplitude for the product in general, negative dumping
Trang 6variables were not used to compensate for positive dumping amplitudes With this calculation of zero (also known as zeroing), the false break margin is always
grouped up due to positive devaluation variables that have been calculated with greater weighting, while the negative false coverage amplitudes are ignored
In its conclusion, the WTO's dispute settlement body has also abandoned this method of calculating dumping margins, with the view that: to ensure fairness, the calculation of the dumping margin under Article 2.4.2 ADA must be understood as performing for the whole product as a whole rather than for each individual
transaction related to the product That stool or each specific type of product
Therefore, by adopting the zeroing method, the EC has ignored some transactions when calculating the dumping margin for the product as a whole This is not in line with the ADA's regulatory spirit
Second, on the issue of the C-regulation of dumping for developing
countries: Article 15 of the ADA sets out the requirement for a special treatment mechanism of the developed member for developing countries, which ensures reasonable attention to the specific status of developing Member States when
considering the application of the developing countries CBPG measures
Considering the dispute between the Ec and India, the DSB assesses that India – as
a developing member , should be guaranteed the rights set out in Article 15 of the ADA by the Ec in the process of applying measures C- dumping That is, the
Commission will have to take into account the situation of India's special forces; consider the possibility of applying constructive measures of India in the process of applying measures Cof dumping According to the DSB, the performance of
obligations under Article 15 of the ADA is understood to mean: (i) the competent authority must take active review actions, with a more open view, the possibility of applying a constructive remedy when applying adumping measure; (ii) The
Trang 7obligation to consider the possibility of applying other constructive measures must
be taken before applying official dumping tax items
However, the Commission did not respond to the proposals of the relevant exporters but simply declined This is deemed to have failed to fulfill its obligation
to consider the possibility of applying other constructive remedies under Article 15
of the ADA
CONCLUDE
Dumping and anti-dumping is one of the hot issues in modern international trade as the trade environment becomes more open by the trend of trade
liberalization and globalization The new view on dumping does not consider the nature of dumping to be unhealthy because of the fact that this activity can bring both positive and negative effects Therefore, the issue of anti-dumping is also conceived in the direction of necessary action of state agencies to prevent unfair dumping behaviors only This is also a requirement to build a fair trade
environment, because if anti-dumping is aimed at preventing all acts of dumping, it
is invisible in general it needs to become free trade; On the other hand, without the anti-dumping tool, excessive trade liberalization will cause the competitive factor - the development dynamics of the economy to be distorted, even eliminated At that time, the values of fairness in each trade chief were no longer maintained by the negative acts of dumping that deprived the books of fair competition of genuine business entities, threatening the interests of consumers
Trang 8LIST OF REFERENCES
1 Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994
accessed on 7/6/2022
2 European Communities – Anti – Dumping Duties on Imports of Cotton type Bed Linen frim India, Panel Report, WT/DS141/R, 30 October 2000
3 Journal of Law Professions, Issue 3, 2014