Olivier and Mann – Selling exported products at a price below the actual cost of making them usually leads to heavy duties as retribution in the global marketplace. This has been the case with China and their massive overproduction which they have used as a way to increase the size of their slice of the marketplace.
After a decade and a half of membership, China is now looking for an amendment to the rates and tariffs that they are charged but the US disagrees.
The EU expressed its disappointment at China’s protestations as efforts are currently underway to adjust the calculation methods used by the EU and they are in the process of ratifying approval from their member states.
The U.S. and Europe remain concerned that China will increase the level of inexpensive products that have already saturated the market.
China is of the belief that the rules of the WTO mean that it should now be counted as one of the market economy states and that entails a change in the duty charged on their products.
China’s commerce ministry defended their position accusing the US and EU of not living up to the standards of the organisation.
The US commerce department naturally disagrees stating that just because a time frame has been passed does not mean that the rules are automatically disregarded when it comes to anti-dumping measures and allows them to maintain its position by using differing anti-dumping tactics.
The US commerce department maintains that with its heavy reliance on state-owned and financed companies, large-scale overproduction, especially in metals, China is nowhere near the position of being able to call itself a country that operates on free market principles and has done little to move down the road towards that with the reforms it needs to make.