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China–GOES (Article 21.5): Time to clarify the standard for price suppression and price depression in AD/CVD investigations

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  • Julia Qin
  • Hylke Vandenbussche

Abstract

This dispute concerns the measures China took to implement the Dispute Settlement Body’s rulings in China–GOES (DS414), which had found a number of violations with respect to China’s antidumping and countervailing duties imposed on grain oriented flat-rolled electrical steel (GOES) imported from the United States. In this compliance proceeding, the United States claimed that the Redetermination issued by China’s Ministry of Commerce (MOFCOM) continued to violate WTO law. At the center of the dispute were MOFCOM’s findings that the US imports had the effect of suppressing and/or depressing the prices of domestic like products. While the Panel reached the conclusion that the MOFCOM findings were inconsistent with WTO rules, it did not clarify the criteria for determining such price effects. In this comment, we call for the adoption of a clearer and more objective standard for determining price suppression/depression in antidumping and countervailing duty investigations, via the tools of economic modeling.

Suggested Citation

  • Julia Qin & Hylke Vandenbussche, 2016. "China–GOES (Article 21.5): Time to clarify the standard for price suppression and price depression in AD/CVD investigations," RSCAS Working Papers 2016/49, European University Institute.
    • Handle: RePEc:rsc:rsceui:2016/49
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    1. Thomas J. Prusa & David C. Sharp, 2001. "Simultaneous Equations in Antidumping Investigations," Journal of Forensic Economics, National Association of Forensic Economics, vol. 14(1), pages 63-78, December.
    2. Dukgeun Ahn & Maurizio Zanardi, 2016. "China - HP-SSST: Last Part of Growing Pains?," RSCAS Working Papers 2016/48, European University Institute.
    3. Hélène Erkel‐Rousse & Daniel Mirza, 2002. "Import price elasticities: reconsidering the evidence," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 35(2), pages 282-306, May.
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