Appellate Body Report onEU−Biodiesel: The Future of China's State Capitalism under the WTO Anti-Dumping Agreement

China's unique economic system poses increasing challenges to the world trading system and attracts growing academic and policy debate. WTO members have frequently resorted to antidumping measures in dealing with price distortions caused by the Chinese government's influence on the economy. The Appellate Body's decision in the recentEU–Biodieseldispute starts to remove the flexibility of condemning state intervention and price distortions under the WTO Anti-Dumping Agreement through antidumping measures. This decision, read with the relevant WTO jurisprudence on the ‘ordinary course of trade’ test and subsidies, suggests that price distortions resulting from state intervention should be addressed under other WTO rules. Therefore, it is necessary for WTO members to shift their focus to, and explore the capacity of, the other rules to overcome the challenges arising from China's state capitalism.

Antidumping Measures and the Most-favoured Nation Treatment Requirement

Decision of the Appellate Body in two cases has raised the issue whether antidumping measures should be applied on MFN basis. One view is that it should be. Another view is that it need not be. Author supports the idea that it need not be but on arguments different from what is given by other writers. Author contends that interpretation of Article VI and Antidumping Agreement do not support the idea of application of antidumping measures on MFN basis.

The World Trade System

When the General Agreement on Tariffs and Trade (GATT) metamorphosed into the WTO in 1994, it seemed that the third pillar of the international economic superstructure was finally put in place. And yet with the failure if member countries to close the Doha Round of trade negotiations and the emergence of bilateral and plurilateral preferential trade agreements (PTAs) such as the Trans-Pacific-Partnership (TPP) , the future of the world trade system seems uncertain. In this volume leading economists examine issues in trade policy that have arisen during this shift. The contributors discuss trends in the world trade system and discuss such topics as the effect of the trade on poverty and inequality, the use of antidumping measures within trade agreements, PTAs and litigation between trading partners, the WTO Trade Facilitation Agreement and the relationship between trade liberalization and food security. They also offer regional perspectives on the TPP and transatlantic free trade.

The Abolition of Antidumping Measures in the EU: An Example and Inspiration for the TTIP

The European Union (EU) is one of the main users of the antidumping instrument. The EU is also a unique example of a regional trade agreement that has abolished the use of antidumping measures in force between the integrating parties. The chapter analyzes the effects on trade of imposing and abolishing antidumping measures in the EU based on empirical evidence. The imposition of antidumping measures is analyzed from the points of effectiveness, that is, if the protection is effective as regards EU producers, the exporters of allegedly dumped products and third country exporters; and efficiency, that is, the cost of protection for EU user industry and consumers. The abolition of antidumping measures is analyzed from the point of injury to EU producers when it comes to price undercutting and loss of market shares; and possible changes in the use of the antidumping instrument against third countries. The chapter also analyses the antidumping measures between the EU and the United States, as well as the experiences with abolishing antidumping measures in the EU and the European Economic Area (EEA) as an inspiration for the Transatlantic Trade and Investment Partnership (TTIP) negotiations.