Comment On The WTO-consistency Of The Cost Substitution Rule Of The EU Anti-Dumping Regulation

There are strict existing rules for calculating the costs in the WTO anti-dumping investigation,for it acts as an important role.With respect to the "cost rule" of the WTO Anti-dumping Agreement(ADA),the authorities make determinations pursuant to Article 2.2 and Article 2.2.1.1,in which the most important elements are "country of origin" and "records kept by the exporter or producer under investigation".The cases which reviewed by the Panel and the Appellate Body refer to a lot of evaluation and interpretation,and they are the resources which can help us to understand the "cost rule".There have differences between Basic Regulation(EU)and ADA,the typical one is "cost substitution" rule which reviewed in the EU-Biodiesel(DS473).The rule grants the EU authorities to object exporter's records but use a alternative information which include information from other market to determinate the cost.Such regulation and practice whether consistent with the obligation of EU is the question the article concerned.There are five chapters:Chapter one,the effect of the WTO ADA.The subject of this part is setting forth the importance of the cost rules of the ADA and the importance of the cost for Anti-dumping investigation,so then the significances to follow the existed rule can be light.Chapter two,the interpretation of the WTO Panel and Appellate Body about the “cost rule”.By study the case,comparing the similarities and differences between the Panel Interpretation and Appellate Body Interpretation.In order to keep the Stability and Predictability of the ADA interpretation,when Panel and Appellate Body settle new cases,they are inclined to refer to the previous cases.Thus,this paper focus on the cases which refer to the interpretation of cost rule,including China-Broiler(US),US-Softwood Lumber? and so on.Then,this paper devotes itself to analysing the ruling of the Panel and Appellate Body.Chapter three,the cost rule in European basic regulation.There are two aspacts,one is stating the general cost rule,and the other is stating the "cost substitution" ruleof European basic regulation.To study more about the "cost substitution" rule,this paper is divided into four parts.Chapter four,the WTO-consistency of the cost substitution rule of the European Union Anti-Dumping Regulation.It is one of the key point of this paper.Cost substitution rule breaks the meaning of “reasonablaly reflect”,which is one term in the Article 2.2.1.1 of ADA.Comparing the concept itself,this paper try to certify the error of the European Union,and refer to the possibility which to be supplied to China.Which must be realized is the attitude to cost substitution rule of China still so confused.Chapter five,the effect of cost substitution rule to Chinese export.When China enter WTO,China give a promise that the importing WTO Member may use a methodology that is not based on a strict comparison with domestic prices or costs in China until 2016.Chinese exporter suffered unfair treatment so much during the past years.Now,European Union may find anothor tool to reply the deadline of Chinese promise,and the cost substitution rule probably to be supplied to China.We must keep clear-headed and have ready.