Anti-dumping Alternative State System Research

The subrogate country system is a special system for non-market economy country to calculate the normal value. In practice EC and US use the subrogate country system to calculate the normal value, and this is the reasons for our enterprise get so much antidumping solution. This thesis targets at the antidumping investigations to our enterprises, try to find the resolution to clear with the problem. Through studying the subrogate country system of EC and US, I find out the extent subrogate country system is not a perfect system. With the hostility and discrimination to non-market economy country, this system has some defeats and does not conform to the rule by law. This system mainly has two problems: Firstly, the chose subrogate country could not be foresight; Secondly, the contents of subrogate country system is uncertainty. All of these make the enterprise of non-market economy country very passive. With finding the problems, this thesis uses the principles of WTO and the legal theories to analyze them. This system infringes the principle of transparency of WTO and foresighted character of law. This system in EC and US also violates the rule by law. China has been a member of WTO, has the WTO members' rights, specially the right to ask the dispute settlement body to challenge the unfair international trade systems. It encourages our country that India has won the lawsuit to the "zero practice" of EC. We must use the right entitled by WTO, strengthen the research to the dispute settlement system and the article of developing country protecting of WTO, and ask the dispute settlement body to resolve the defeats of subrogate country system. This article is divided into five parts and the highlights are as follows: Section One defines dumping , antidumping law and emphasizes that the antidumping are measures to keep international trade equitably. But the abuse of the anti-dumping measures becomes a common occurrence, affecting the development of trade. This makes all the countries want to restrict the abuse of the anti-dumping measures. From GATT to WTO, international antidumping laws become mature, with the clear definition of dumping, specially normal value, the WTO antidumping law limit the power of government to use antidumping measures. Section Two makes an introduction to the three related aspects:normal value,non-market economy and subrogate country system. In commons, normal value is domestic price. Since non-market economy has special characters in economic essence, members of GATT/WTO decide a strict comparison with domestic prices in such a country may not appropriate and treat them with difference. The developed countries (ECC and US) invent the subrogate country system to deal with this issues. Determination of normal value for import from non-market economy countries involves the selection of a market economy country in which normal value of the like product will be calculated. In Protocol on the Accession of the People's Republic of China, our country accept that members of WTO shall use the subrogate country to calculate the normal value of Chinese goods. Section Three introduces the subrogate country system in antidumping law of EC and US. Through discussing the selection of a market economy country,calculating the normal value of non-market economy and other special rules. Then reviews this system and finds that this system already has some defeats. Section Four is the key part of this thesis. This thesis uses the principles of WTO and the legal theories to analyze them. The delayed subrogate country and the varied subrogate country infringes the predictability , unification requirement of the principle of transparency of WTO; As regards to the subrogate country system, the subrogate country is determined after the anti-dumping action has been taken. This transgresses the predictability in legal jurisprudence. The special rules, such as "Ten Day rules" and "Best Available Information Rules", which give governments so much power to decide dumping in EC and US, violates the rule by law. So subrogate country system has two defeats: unpredictability and uncertainty .Above all, this system infringes the principle of transparency of WTO and predictability in legal jurisprudence. This system in EC and US also violates the rule by law. Section Five try to find the solution of these issues. This section introduce theconception,characters and contents of the WTO dispute settlement system, then analyze the precedent which India has won in the "zero practice" dispute against EC. At last, draws the conclusion, that WTO members shall use subrogate country system to calculate normal value of Chinese goods, but nowadays the subrogate country system has defeats which violate the principles of WTO and the legal theories, our country must apply the right entitled by WTO, and use the article of developing country protecting of WTO, to ask the dispute settlement body to resolve the defeats of subrogate country system.