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Dean Spinanger Kiel Institute for World Economics dspinanger@ifw.uni-kiel.de. Lao PDR & the WTO Accession Process: Antidumping Measures et al June, 2005. I. Introduction and Overview. „There is a WTO code...Antidumping, Which protectionists say is just thumping. With hardly a slip
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Dean Spinanger Kiel Institute for World Economics dspinanger@ifw.uni-kiel.de Lao PDR &the WTO Accession Process:Antidumping Measures et alJune, 2005
I. Introduction and Overview „There is a WTO code...Antidumping, Which protectionists say is just thumping. With hardly a slip Y‘all be caught in its grip, and your exports soon will be slumping.“ Thomas Stearns
Structure • Introduction and Overview • The WTO and ADMs: What‘ up?? • Summary and Conclusions
I. Introduction and Overview Some of the widely acclaimed achievements of the Uruguay Round(UR) were still in the process of being implemented when in Doha a new round was conceived. The question was – after the most wide-sweeping round ever – what to do?
I. Introduction and Overview A glance at the Doha Ministerial Declaration quickly reveals that topics were broad- brushed ......perhaps in the case of ADMs in order to just barely satisfy those who wanted the issue covered, but perhaps even more to placate those who didn‘t want the issue on the books. .
I. Introduction and Overview Furthermore, this was perhaps also due to the Seattle disaster. While tariff rates have been decreased noticeably across the board, except for sectors like agriculture and those in many developing countries, non-tariff barriers received only veiled attention.
I. Introduction and Overview How else can it be explained that in paragraphs 28-29 the issues are only vaguely mentioned? Talk is made of „clarifying and improving disciplines“, of „taking into account developing and least-developing countries“ of indicating „disciplines on trade distorting issues.“
I. Introduction and Overview IT IS AFTER ALL MOST IMPORTANT:Keep a level and understandable playing field!!That is what the WTO is all about!!That is why we have such an organization.
I. Introduction and Overview In raising issues in this context this presentation heads in the direction of the 2001 APEC report which dealt with „impediments to trade and investment.“ There it was straightforwardly stated that, „as tariffs ..come down, it becomes...... important... to tackle other impediments to trade“
I. Introduction and Overview What this means is very simple: In the various GATT/WTO rounds of MTNs tariff levels have in some areas been reduced to the point that they provide little protection. Rightly so, but some industries still think they deserve protection.
I. Introduction and Overview So what happens?? In a study done for PECC in 2000 it was concluded that recourse to NTBs has grown over time as tariff protection fell. Was this really the case? Or is this merely the litany of do-good free traders?
I. Introduction and Overview Let‘s take a look at the evidence. Let us look at the changing tariff rates of APEC countries across the decade of the 90‘s and compare this with the changing number of ADMs applied.
ADMS & EU Imports from E. Eur/PRC EU vs EE
ADMS & EU Imports from E. Eur/PRC USA VS. EE
ADMS & EU Imports from E. Eur/PRC EU VS PRC
ADMS & EU Imports from E. Eur/PRC US VS PRC
I. Introduction and Overview If this is the case, then the misuse of such measures threatens the core of trade liberalization goals, or rather the essence of GATT/WTO principles. These principles are aimed at allowing all economies in the world to profit from the potential benefits of freer trade in goods and services via liberalization of markets.
I. Introduction and Overview For sure this is the basic reason why economies like China, Vietnam, others and now Lao have tried so hard in recent years to become WTO members Surely they were thinking that their industries could become more competitive and that consumers‘economic welfare could improve by being able to purchase more for their money.
I. Introduction and Overview Unfortunately reality looks different. Hence, this overview addresses prevailing AD policies and looks at how easy it is for industries to state that dumping occurred. It then offers a solution to eliminate obstacles in the current process to determine if dumping took place. It doesn‘t touch on other NTBs, but adds some closing remarks.
Anti-Dumping Measures (ADMs) Initiated by ICS and DCs: 1995 – 2004
Ratio of Measures (M) to Initiations (I) In the following diagrams the ratio of measures enacted to initiations announced over the period 95 – 02 is shown in the caption. The yearly values of measures enacted has been lagged by one period.
And Which Sectors Were Affected? Base metals (XV) and chemical products (VI) were by far the most affected areas. T&C products (XI) were hit by a relatively small number of ADMs, similar to machinery (XVI) but less than plastics (VII). Other sectors hit were stone, glass/glassware etc (XIII) and agricultural products (I – IV). However, the ratio of applied measures to initiated proceedings (M/I) was by far the highest for T&C products (72%) showing that economies were more serious about trying to protect the sector.
Ratio of Measures (M) to Initiations (I) In the following diagrams the ratio of measures enacted to initiations announced over the period 95 – 04 is shown in the caption. The yearly values of measures enacted has been lagged by one period.
II. The WTO, ADMs and NTBs: What‘s up?? Overview of AD Issues • Determing the act of dumping • Determining injury • Procedures • Other specific concerns
II. The WTO, ADMs and NTBs: What‘s up?? What can be done???? Boils down to 2 key questions: DOES PROCESS PRODUCE ALLEGED EVIDENCE?? DOES EVIDENCE PROVE CRIME WAS COMMITTED??
II. The WTO, ADMs and NTBs: What‘s up?? Problem Areas Determination of dumping (Art. 2) Determination of injury (Art.3) Investigation procedures (Art.5 & 6) Price undertakings (Art. 8) Imposition/Collection of duties (Art. 9) Review (Art.11) Dispute settlement (Art.17)
