The World Trade Organization (WTO) recently released its
statistical report on global anti-dumping cases in the second half
of 2005.
The report revealed a reduction in the number of anti-dumping
charges and measures and their declining role as global trade
barriers.
In terms of the number of new anti-dumping investigations, 16
WTO members reported that a total of 82 cases were launched, 24
fewer than that in the same period in 2004, a fall of 23
percent.
Regarding final anti-dumping measures by WTO members, 76 fewer
measures were applied by 15 WTO members in the second half of last
year, 17 less than the same period in 2004, a drop of 18
percent.
?
It was the fourth consecutive year to witness a decline in the
number of new anti-dumping investigations worldwide. In addition,
it was the second consecutive year in which the number of final
anti-dumping measures had fallen.
Despite the slow progress of the Doha Round, this indicates that
the global free trade situation has nevertheless improved.
However, the easing of these trade tensions sharply contrasts
with China's situation in coping with dumping charges.
Anti-dumping was the first form of trade barrier that China
encountered. This took place in September 1979, when the European
Community filed anti-dumping charges against Chinese exports of
saccharin and alarm clocks.
Such measures have a serious impact on China's exports. Since
1995, China has become the country receiving the most anti-dumping
charges.
In the second half of 2005, 33 anti-dumping cases were launched
against China, an increase of 37.5 percent compared with 2004 and
3.7 times more than that against Malaysia, the second-largest
recipient. Meanwhile, 22 final measures were applied against China,
2.6 times more than against the United States.
Since it is the only country in the world that can make all
manufactured goods with competitive costs, a wide range of Chinese
products have fallen foul of anti-dumping charges.
This trend continues and worsens despite changes to China's
export commodity structure. Whatever industries develop fast in
China risk falling victim to dumping charges.
In the second half of 2005, for example, the products that were
the most frequent subject of reported new investigations were
chemicals (17), base metals (15) and plastics (12). All are sectors
in China which are either enjoying rapid growth or have a
competitive advantage.
Developing countries play a dual role in China's trade
disputes.
On the one hand, they are China's partners in promoting a new
international economic order to replace the current one, which
favors developed countries.
But, despite having much in common, the interests of some
developing countries sometimes conflict with China's.
Compared with technology- and competition policy-based trade
barriers, anti-dumping measures are a more convenient weapon to
wield. Therefore, as developed countries have increasingly adopted
anti-dumping strategies, developing economies are also following
suit.
Among the 104 anti-dumping cases launched in the first half of
2002, 63 were launched by developing countries. India, Argentina
and Mexico took first, third and fifth place.
In the second half of 2005, developing countries continued to
raise anti-dumping charges, launching 67 percent of world's
anti-dumping cases and applying 64 percent of global anti-dumping
final measures.
To make matters worse, compared with developed economies, some
developing nations are more willful in raising dumping charges
against China and adopt stricter measures, further exacerbating the
protectionist risks China faces.
In the foreseeable future, anti-dumping measures will remain the
major threat facing China's exporters. And the dual role of
developing countries in the process has complicated the
situation.
China has made great headway in improving its trade remedy
system within the WTO legal framework.
As the WTO report shows, among members reporting new cases from
July to December 2005, the highest number was China, with 13
initiations, followed by Argentina and India, which each opened 11
cases.
China is fully entitled to use legal weapons allowed by WTO
rules to protect its legitimate trade rights. But that does not
mean we can use those rules to protect inefficient enterprises.
These measures are not aimed at blocking imports, but instead
are designed to help Chinese exporters gain a level playing field
in the international trade arena.
(China Daily May 25, 2006)
?
