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1 – 10 of 203
Article
Publication date: 5 June 2017

Sang Man Kim and Jongho Kim

The purpose of this paper is to review the use of zeroing in the weighted average-to-transaction (W-T) comparison methodology and targeted dumping under the anti-dumping agreement…

Abstract

Purpose

The purpose of this paper is to review the use of zeroing in the weighted average-to-transaction (W-T) comparison methodology and targeted dumping under the anti-dumping agreement by reviewing the WTO appellate body’s rulings on the use of zeroing in the W-T comparison methodology in the USA – anti-dumping measures on large residential washers from Korea (DS464). Although the appellate body has ruled that the use of zeroing would not be allowed in the weighted-average-to-weighted-average comparison methodology nor in the transaction-to-transaction comparison methodology, it has not ruled on whether the use of zeroing is allowed in the W-T comparison methodology prior to the instant case.

Design/methodology/approach

This paper mainly analyzes the WTO appellate body report on the USA – anti-dumping and countervailing measures on large residential washers from Korea’s rulings (DS464) and reviews other WTO appellate body reports on the use of zeroing in anti-dumping measures. This paper reviews the relevant provisions of the WTO anti-dumping agreement and the US Anti-Dumping Act, and also referred prior papers on the use of zeroing.

Findings

The appellate body upheld the panel’s finding that the USA’s use of zeroing in the W-T comparison methodology is inconsistent with Article 2.4.2 of the anti-dumping agreement. As zeroing inflates dumping margins, increases the amount of duty collected, and hinders the expansion of trade in goods. The use of zeroing should be prohibited or permitted only in very limited circumstances.

Social implications

Zeroing, which has been the subject of many WTO disputes between the USA and foreign governments, causes dumped sales to be masked by fair value. The WTO appellate body has consistently condemned the US practice of zeroing over the past decade as an unfair commerce practice. The instant case and this paper will help to stop the practice of zeroing in anti-dumping measures.

Originality/value

The text of Article 2.4.2 does not clearly prohibit the use of zeroing. The paper reviews the WTO appellate body’s rulings on the use of zeroing in the W-T comparison methodology in the USA – anti-dumping measures on large residential washers from Korea (DS464). The appellate body report was very recently circulated, on September 9, 2016. The appellate body has not ruled on whether the use of zeroing is allowed in the W-T comparison methodology prior to the instant case. This paper, first, concludes that the W-T comparison methodology is inconsistent with Article 2.4.2 of the anti-dumping agreement.

Details

Journal of Korea Trade, vol. 21 no. 2
Type: Research Article
ISSN: 1229-828X

Keywords

Article
Publication date: 1 July 2005

Yuhan Liu

Defines dumping as the sale of goods onto the market of an importing country at less than their normal value on the domestic market, and explains the economic rationale behind…

1613

Abstract

Defines dumping as the sale of goods onto the market of an importing country at less than their normal value on the domestic market, and explains the economic rationale behind dumping. Reviews the origin of anti‐dumping laws, and the objectives of applying anti‐dumping duty legislation to non‐market economy countries, with reference to European Union (EU) anti‐dumping measures against China; the latter is still viewed as a non‐market economy. Indicates the impact of the EU anti‐dumping campaign on Chinese industries and legal strategies for challenging the EU anti‐dumping campaign. Concludes that the campaign is unfair and should now recognise the progress of economic reform in China, which since 2001 is a member of the World Trade Organization.

Details

Journal of Financial Crime, vol. 12 no. 3
Type: Research Article
ISSN: 1359-0790

Keywords

Article
Publication date: 28 March 2023

Mohd Nayyer Rahman, Badar Alam Iqbal and Nida Rahman

This study aims to find the impact of the trade war between the USA and China on Asian economies. Apart from macroeconomic variables associated with trade, this study explicitly…

Abstract

Purpose

This study aims to find the impact of the trade war between the USA and China on Asian economies. Apart from macroeconomic variables associated with trade, this study explicitly creates a trade war scenario and trade war participant dummies. Using the neural network multilayer perceptron, this study checks for the causal linkages between the predictors and target output for the panel of Asian economies and the USA.

Design/methodology/approach

A conceptual model of the after effects of trade war in a quadrant is developed. Variables related to trade and tariffs are included in the study for a panel of 19 Asian economies. The feedforward structure of neural network analysis is used to identify strong and weak predictors of trade war.

Findings

The hidden layers of the multilayer perceptron reveal the inconsistency in linkages for the predictors’ services exports, tariff measures, anti-dumping measures, trade war scenario dummy with gross domestic product. The findings suggest that to curtail the impact of the trade war on Asian economies, predictors with neural evidence must be paid due weightage in policy determination and trade agreements.

Originality/value

The study applies a novel and little explored AI/ML technique of Neural Network analysis with training of 70% observations. The paper will provide opportunity for other researchers to explore techniques of AI/ML in trade studies.

Details

Journal of Chinese Economic and Foreign Trade Studies, vol. 16 no. 2
Type: Research Article
ISSN: 1754-4408

Keywords

Article
Publication date: 12 September 2016

Jaemin Lee and Youngjeen Cho

The purpose of this paper is to examine zeroing jurisprudence under the WTO’s Anti-Dumping Agreement and to see if the jurisprudence can still be applied to situations of targeted…

Abstract

Purpose

The purpose of this paper is to examine zeroing jurisprudence under the WTO’s Anti-Dumping Agreement and to see if the jurisprudence can still be applied to situations of targeted dumping where dumping takes place in a specific region, at specific timing, or for specific consumer groups.

Design/methodology/approach

This paper examines the prior decisions of the WTO panels and the Appellate Body relating to the zeroing practice. It categorizes the key elements of these prior decisions where the zeroing practice has been found WTO-inconsistent. While there has been no specific dispute addressing targeted dumping per se, this paper proves that core elements of the zeroing practice have been anatomized and dissected by the panels and the Appellate Body in prior proceedings. The paper then analyzes whether these key elements still exist in the specific context of targeted dumping and thus whether application of zeroing is still prohibited in targeted dumping situations.

Findings

The existing jurisprudence on zeroing from previous WTO disputes should apply to targeted dumping situations as well. Unbridled application of zeroing in the targeted dumping situations will effectively nullify the existing zeroing jurisprudence accumulated through a decade of WTO disputes. If unchecked, this calculation methodology in the context of targeted dumping may open the back door wide open for “zeroing” negative anti-dumping margins. The paper concludes that the existing jurisprudence on zeroing stands for the proposition that zeroing in targeted dumping should also be prohibited.

Originality/value

This paper examines the legality of the zeroing practice in targeted dumping situations, which has been one of the most controversial issues among WTO members for the past several years. The analyses and discussions contained in this paper will provide legal guideline to evaluate zeroing in targeted dumping within the WTO framework. The outcome of the research will provide a platform for continued research and discussion in this area.

Details

Journal of Korea Trade, vol. 20 no. 3
Type: Research Article
ISSN: 1229-828X

Keywords

Article
Publication date: 22 March 2013

Valerie D. Dye

In WTO proceedings The Dispute Settlement Body has generally adopted a standard of review that is less than deferential even in the Anti‐Dumping agreement which envisages a…

Abstract

Purpose

In WTO proceedings The Dispute Settlement Body has generally adopted a standard of review that is less than deferential even in the Anti‐Dumping agreement which envisages a deferential standard of review. What should be the applicable standard of review in WTO proceedings? The purpose of this paper is to present an analysis of the concept of “deference as respect” as developed by David Dyzenhaus and discuss its application to the WTO. This paper argues that the WTO should apply a standard of “deference as respect” in the interest of preserving economic sovereignty and the legitimacy of the WTO.

Design/methodology/approach

The paper involves the analysis of relevant case law and also the analysis and application of the concept of “deference as respect” in WTO proceedings. It also uses a comparative methodology in that it highlights the application of domestic legal principles at the international level.

Findings

The main finding is that within the WTO there is need to balance the requirements of trade liberalisation which eschews protectionism and the requirements of sovereignty and legitimacy. This balance can partly be achieved when a standard of review akin to “deference as respect” is applied.

Originality/value

This paper is different from previous writings on WTO standard of review in that it applies the concept of “deference as respect”. This analysis and application will provide academics and members of the DSB with a new way of assessing the standard of review in the WTO.

Details

Journal of International Trade Law and Policy, vol. 12 no. 1
Type: Research Article
ISSN: 1477-0024

Keywords

Article
Publication date: 25 January 2019

Amrita Bahri and Toufiq Ali

World Trade Organisation grants rights to its members, and WTO Dispute Settlement Understanding (DSU) provides a rule-oriented consultative and judicial mechanism to protect these…

Abstract

Purpose

World Trade Organisation grants rights to its members, and WTO Dispute Settlement Understanding (DSU) provides a rule-oriented consultative and judicial mechanism to protect these rights in cases of WTO-incompatible trade infringements. However, the DSU participation benefits come at a cost. These costs are acutely formidable for least developing countries (LDCs) which have small market size and trading stakes. No LDC has ever filed a WTO compliant, with the only exception of India-Battery dispute filed by Bangladesh against India. This paper aims to look at the experience of how Bangladesh – so far the only LDC member that has filed a formal WTO complaint – persuaded India to withdraw anti-dumping duties India had imposed on the import of acid battery from Bangladesh.

Design/methodology/approach

The investigation is grounded on practically informed findings gathered through authors’ work experience and several semi-structured interviews and discussions which the authors have conducted with government representatives from Bangladesh, government and industry representatives from other developing countries, trade lawyers and officials based in Geneva and Brussels, and civil society organisations.

Findings

The discussion provides a sound indication of the participation impediments that LDCs can face at WTO DSU and the ways in which such challenges can be overcome with the help of resources available at the domestic level. It also exemplifies how domestic laws and practices can respond to international legal instruments and impact the performance of an LDC at an international adjudicatory forum.

Originality/value

Except one book chapter and a working paper, there is no literature available on this matter. This investigation is grounded on practically informed findings gathered with the help of original empirical research conducted by the authors.

Details

Journal of International Trade Law and Policy, vol. 18 no. 1
Type: Research Article
ISSN: 1477-0024

Keywords

Article
Publication date: 1 February 1996

Michael J. Roarty

The creation of the Single Market is changing the direction of trade in the European Union (EU) as member countries become more closely integrated. This has major implications for…

3605

Abstract

The creation of the Single Market is changing the direction of trade in the European Union (EU) as member countries become more closely integrated. This has major implications for trade with the rest of the world and thus the evolution of EU trade policy. Presents empirical evidence to show that the EU became more protectionist during the 1980s, particularly in the sphere of non‐tariff barriers. Discusses a detailed analysis of the factors presently shaping EU trading policy and assesses whether a “fortress Europe” will develop.

Details

European Business Review, vol. 96 no. 1
Type: Research Article
ISSN: 0955-534X

Keywords

Article
Publication date: 1 June 2004

James Agarwal and Terry Wu

The transition from a command economy to a market‐based economy has been remarkably successful in China. After 15 years of negotiations, China finally joined the World Trade…

21156

Abstract

The transition from a command economy to a market‐based economy has been remarkably successful in China. After 15 years of negotiations, China finally joined the World Trade Organization (WTO) in December 2001. Because of trade and investment liberalization under the WTO, there will be greater competition between Chinese and foreign firms, both inside China and outside China. While there is a great deal of economic literature on China's entry to the WTO, there has been no research on the global marketing impact and implications of China's membership of the WTO. This paper is an attempt to fill this gap. The objective of this study is to examine the general impact of China's entry to the WTO and to assess the global marketing implications of specific trade‐related policy issues within the WTO framework for China. Eleven specific WTO policy issues are examined and several global marketing propositions offered in terms of the WTO's impact on and implications for China.

Details

International Marketing Review, vol. 21 no. 3
Type: Research Article
ISSN: 0265-1335

Keywords

Open Access
Article
Publication date: 29 January 2021

Mirek Tobiáš Hošman

Although officially ended in July 2020, China’s dispute about its non-market economy (NME) status at the World Trade Organization (WTO) is far from being resolved. The NME status…

3425

Abstract

Purpose

Although officially ended in July 2020, China’s dispute about its non-market economy (NME) status at the World Trade Organization (WTO) is far from being resolved. The NME status enables China’s counterparts to disregard Chinese prices in antidumping proceedings and instead use the so-called surrogate country methodology. This paper aims to structure and analyze the complex debate, which emerged with the disputes China has filed against the European Union and the USA at the WTO, and therefore provide a point of reference for future analysis of and debates about China’s NME status.

Design/methodology/approach

The analysis is based on the existing academic literature on the topic and on the legal WTO-related documents (e.g. multilateral agreements, China’s Accession Protocol, legal findings of the WTO dispute panels).

Findings

Four different interpretations of the respective legal documents about China’s NME status are discussed and strong and weak aspects of these interpretations are pointed out. Also, several misunderstandings and mistakes appearing in the debate are clarified.

Practical implications

As the question of China’s position at the WTO and its NME status has not been resolved yet and some authors believe that China will pursue its case again once the WTO Appellate Body revives its functionality, the analysis of the debate can serve as a point of reference for the academic debate and the future research on this topic. Moreover, it offers an introduction to China’s NME position at the WTO for the newcomers to this topic.

Originality/value

Although China’s NME status has been much discussed, there is no literature review that would structure the debate and point out some of the (dis)advantages of the respective arguments and interpretations. Rather than adding to the large corpus of literature about the NME status, this study takes this corpus as the object of its analysis.

Details

Journal of International Trade Law and Policy, vol. 20 no. 1
Type: Research Article
ISSN: 1477-0024

Keywords

Article
Publication date: 21 June 2011

Elimma C. Ezeani

The purpose of this paper is to examine the critical issue of legal interpretation on the “development question” as they arise before WTO panels and Appellate Body, in view of the…

Abstract

Purpose

The purpose of this paper is to examine the critical issue of legal interpretation on the “development question” as they arise before WTO panels and Appellate Body, in view of the benefits inherent in a more‐rounded consideration of the development needs and concerns of WTO developing country Member States.

Design/methodology/approach

The introduction sets out the background to the challenges of developing countries in utilising the dispute settlement process effectively and using existing support. By analysing relevant cases, Section 2 analyses the “development question” and how it has been so far considered in legal interpretation. Section 3 addresses WTO jurisprudence on development, examining situations wherein “development” arises in the course of WTO dispute settlement. An examination as to how this aspect of WTO jurisprudence may be revisited including the potential aid of trade policy review mechanisms, and procedures for enforcement is then undertaken. It concludes on the position that the WTO judicial review process can work better by providing the much‐needed balance between binding global trade rules and the domestic progress of its developing country membership at the level of dispute settlement.

Findings

This paper establishes the importance of recognising and addressing the fact that core challenges and concerns facing developing countries can and should be factored into the legal interpretation of issues in dispute settlement.

Originality/value

A decisive enquiry into WTO development jurisprudence, this paper addresses developing country capacity to pursue the legal opportunities promised by the WTO dispute settlement mechanism, and how this can be redressed.

Details

Journal of International Trade Law and Policy, vol. 10 no. 2
Type: Research Article
ISSN: 1477-0024

Keywords

1 – 10 of 203