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The EU Trade Defence Improvements under Global Challenges

Li, Jin LU (2021) JAEM03 20201
Department of Law
Faculty of Law
Abstract
The amendments for the EU anti-dumping and anti-subsidy rules in 2017 and 2018 show a great change compared to the original ones. This paper will focus on two controversial parts among them, namely the normal value construction under the “significant distortions” and adjustment on the lesser-duty-rule. Besides, lawfulness under the WTO law with these two parts will respectively be discussed. Since China has played an important role in the first amendments, this paper tries to analyse whether the EU can justify its application of new normal value calculation method to exports from China. Finally, there may exist some problems with such tightening trade defence measures in the Member States due to different industry structures, especially... (More)
The amendments for the EU anti-dumping and anti-subsidy rules in 2017 and 2018 show a great change compared to the original ones. This paper will focus on two controversial parts among them, namely the normal value construction under the “significant distortions” and adjustment on the lesser-duty-rule. Besides, lawfulness under the WTO law with these two parts will respectively be discussed. Since China has played an important role in the first amendments, this paper tries to analyse whether the EU can justify its application of new normal value calculation method to exports from China. Finally, there may exist some problems with such tightening trade defence measures in the Member States due to different industry structures, especially the chemical industry.

The paper draws the conclusion that the “significant distortions” situation remains vagueness in legal perspective, which have to be examined in particular case whether they will be consistent under WTO laws. However, the cost adjustment in normal value calculation seems to already breach the WTO laws in terms of its legislative intention. Although disapplication of the lesser-duty-rule itself will be WTO-compliant, combined with the high dumping margin, new problem “double remedies” will occur, which is not allowed by WTO. In the context of irreversible internationalism with the active participation of China, adopting such tightening trade defence rules will eliminate competitive advantages from exports of third countries, but this will also have negative influence on the Union’s export-oriented industries, such as the chemical industry. In this way, Member States which have export-oriented industry with high competitive advantage would not be an active supporter for such trade defence rules. (Less)
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author
Li, Jin LU
supervisor
organization
course
JAEM03 20201
year
type
H2 - Master's Degree (Two Years)
subject
keywords
WTO, EU, Anti-dumping, TDI
language
English
id
9040780
date added to LUP
2021-02-19 18:49:52
date last changed
2021-02-19 18:49:52
@misc{9040780,
  abstract     = {The amendments for the EU anti-dumping and anti-subsidy rules in 2017 and 2018 show a great change compared to the original ones. This paper will focus on two controversial parts among them, namely the normal value construction under the “significant distortions” and adjustment on the lesser-duty-rule. Besides, lawfulness under the WTO law with these two parts will respectively be discussed. Since China has played an important role in the first amendments, this paper tries to analyse whether the EU can justify its application of new normal value calculation method to exports from China. Finally, there may exist some problems with such tightening trade defence measures in the Member States due to different industry structures, especially the chemical industry.

The paper draws the conclusion that the “significant distortions” situation remains vagueness in legal perspective, which have to be examined in particular case whether they will be consistent under WTO laws. However, the cost adjustment in normal value calculation seems to already breach the WTO laws in terms of its legislative intention. Although disapplication of the lesser-duty-rule itself will be WTO-compliant, combined with the high dumping margin, new problem “double remedies” will occur, which is not allowed by WTO. In the context of irreversible internationalism with the active participation of China, adopting such tightening trade defence rules will eliminate competitive advantages from exports of third countries, but this will also have negative influence on the Union’s export-oriented industries, such as the chemical industry. In this way, Member States which have export-oriented industry with high competitive advantage would not be an active supporter for such trade defence rules.},
  author       = {Li, Jin},
  keyword      = {WTO,EU,Anti-dumping,TDI},
  language     = {eng},
  note         = {Student Paper},
  title        = {The EU Trade Defence Improvements under Global Challenges},
  year         = {2021},
}