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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

Open Access
Article
Publication date: 31 December 2008

Jai S. Mah

This paper examines the effectiveness of the social and political factors as the determinants of antidumping duties against the transition economies. The empirical evidence shows…

Abstract

This paper examines the effectiveness of the social and political factors as the determinants of antidumping duties against the transition economies. The empirical evidence shows that protectionist pressures tend to be strengthened against them with low labor standards, although protectionist tendencies with respect to social dumping are not so apparent in actual impositions of antidumping duties. There is a weak evidence that the different degrees of democraticness influenced the protectionism against the transition economies during the late 1990s, while such an effect is not found during the period of 2002-2006, as the concerned countries passed the initial stage of transition.

Details

Journal of International Logistics and Trade, vol. 6 no. 2
Type: Research Article
ISSN: 1738-2122

Keywords

Article
Publication date: 11 September 2009

Weifeng Zhou and Ludo Cuyvers

The purpose of this paper is to investigate the trends of antidumping actions targeting East Asia and to examine the macroeconomic determinants of European Union (EU) antidumping…

Abstract

Purpose

The purpose of this paper is to investigate the trends of antidumping actions targeting East Asia and to examine the macroeconomic determinants of European Union (EU) antidumping actions against East Asian countries including China, Japan, Korea, Hong Kong, and Taiwan.

Design/methodology/approach

A Negative Binomial Regression approach is used to estimate the macroeconomic determinants (exchange rates, gross domestic product (GDP) growth, and unemployment rates) of EU antidumping actions against East Asian countries.

Findings

The empirical estimation results suggest that the macroeconomic determinants (exchange rates, GDP growth, and unemployment rates) significantly affect antidumping initiations against a particular country in a particular year; in addition, the changing competitive structure and environment in international trade play a role in prompting antidumping actions, and the countries which are larger sources of EU imports are more likely to be hit with antidumping actions.

Originality/value

This is the first paper to examine the macroeconomic determinants of EU antidumping actions targeting East Asian countries and the empirical estimation results provide strong evidence. It also finds that the changing competitive structure and environment in international trade prompt antidumping actions.

Details

Journal of International Trade Law and Policy, vol. 8 no. 3
Type: Research Article
ISSN: 1477-0024

Keywords

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 October 1996

Robert W. McGee

Anti‐dumping laws have been around for decades. They have increased in importance in recent years and will become even more important in the future as a result of the Uruguay…

1924

Abstract

Anti‐dumping laws have been around for decades. They have increased in importance in recent years and will become even more important in the future as a result of the Uruguay Round and the creation of the World Trade Organization. Yet anti‐dumping laws are inherently protectionist because they protect domestic producers at the expense of consumers. They have a chilling effect on price competition and cause the prices on a wide range of products to be higher than would otherwise be the case. Examines the anti‐dumping laws in theory and practice, from both a utilitarian and human rights context, and concludes that these laws cannot be justified on any reasonable grounds. Calls for their repeal, the sooner the better.

Details

European Business Review, vol. 96 no. 5
Type: Research Article
ISSN: 0955-534X

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: 1 January 1978

The Equal Pay Act 1970 (which came into operation on 29 December 1975) provides for an “equality clause” to be written into all contracts of employment. S.1(2) (a) of the 1970 Act…

1374

Abstract

The Equal Pay Act 1970 (which came into operation on 29 December 1975) provides for an “equality clause” to be written into all contracts of employment. S.1(2) (a) of the 1970 Act (which has been amended by the Sex Discrimination Act 1975) provides:

Details

Managerial Law, vol. 21 no. 1
Type: Research Article
ISSN: 0309-0558

Abstract

Details

The Political Economy of Policy Reform: Essays in Honor of J. Michael Finger
Type: Book
ISBN: 978-0-44451-816-3

Article
Publication date: 1 March 1990

Roger J. Sandilands

Allyn Young′s lectures, as recorded by the young Nicholas Kaldor,survey the historical roots of the subject from Aristotle through to themodern neo‐classical writers. The focus…

Abstract

Allyn Young′s lectures, as recorded by the young Nicholas Kaldor, survey the historical roots of the subject from Aristotle through to the modern neo‐classical writers. The focus throughout is on the conditions making for economic progress, with stress on the institutional developments that extend and are extended by the size of the market. Organisational changes that promote the division of labour and specialisation within and between firms and industries, and which promote competition and mobility, are seen as the vital factors in growth. In the absence of new markets, inventions as such play only a minor role. The economic system is an inter‐related whole, or a living “organon”. It is from this perspective that micro‐economic relations are analysed, and this helps expose certain fallacies of composition associated with the marginal productivity theory of production and distribution. Factors are paid not because they are productive but because they are scarce. Likewise he shows why Marshallian supply and demand schedules, based on the “one thing at a time” approach, cannot adequately describe the dynamic growth properties of the system. Supply and demand cannot be simply integrated to arrive at a picture of the whole economy. These notes are complemented by eleven articles in the Encyclopaedia Britannica which were published shortly after Young′s sudden death in 1929.

Details

Journal of Economic Studies, vol. 17 no. 3/4
Type: Research Article
ISSN: 0144-3585

Keywords

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