Market Economy Status (MES) plays a key role in deciding how an exporting country, in this case China, will be treated for the calculation of dumping margins in the context of anti-dumping investigations by the EU. Meaning that where a market economy method is applied in the dumping calculations, the level of dumping margin will be (significantly) lower.
This Cefic briefing paper outlines the debate surrounding granting Market Economy Status (MES) to China, which would influence how the EU calculates dumping margins in anti-dumping investigations. Despite China’s significant role as a chemical industry leader and its growth as the EU’s second-largest chemicals trading partner, Cefic argues that China does not yet meet the EU’s technical conditions for granting MES. The decision remains primarily technical rather than political, and Cefic stresses the need for fair market access and the elimination of tariffs to maintain healthy competition and avoid unfair trade practices.
Key takeaways:
- China currently does not meet the EU’s technical criteria for Market Economy Status.
- Fair market access and the elimination of all chemical tariffs are essential to ensuring fair competition and preventing unfair trade practices.
- The EU should take into account the positions of other major trading partners, especially the US, before granting MES to China.