Can China'S Shoes Win? The Flaw In WTO'S Anti Dumping Agreement Is The Key.

In February 4, 2010, China prosecuted the European Union with impassioned words: the 2006 ruling of the European Union and the full review of 2009 violated almost all the core provisions of the WTO anti dumping Agreement (including substantive provisions and procedural provisions).

The key to winning Chinese shoes in litigation is not by subjective effort, but by objective loopholes and flaws in the WTO Antidumping Agreement.

According to WTO

However, due to the different national conditions, the unit cost of Brazil is higher than that of China, and the anti-dumping is also against Chinese shoes. The result is artificially raising China's production cost and raising the dumping margin accordingly.

This is very unfair to China.

China has repeatedly proposed to abolish this rule during the Doha Round negotiations. However, judging from the revised draft issued recently by WTO, this rule still exists.

For example, business activities are allowed to sell "zero profit" and inferior products, but the WTO "Anti-dumping Agreement" does not provide for this. When investigating the production cost, the investigating countries do not consider defective products, regard all products as high quality products, and add a profit margin, artificially raising production costs and dumping margins.

In addition, the agreement does not calculate the "extent of damage" when determining whether the similar industries in the country of investigation are damaged; in the investigation procedure, it gives the investigative countries great discretion.

The way to win Chinese shoes

In recent years, China EU trade and economic development has been developing rapidly. China is the second largest European Union.

First of all, it should be divided.

The EU anti-dumping on Chinese shoes is at the expense of the interests of local consumers and importers. The latter must pay the anti-dumping duty, which is bound to arouse their resentment.

Chinese enterprises should make full use of these importers and consumers' emotions and communicate with their chamber of Commerce.

Compared with the United States, the EU's policy is relatively mild. In the Doha Round negotiations, it has always advocated that anti-dumping should take into account the public interests of society. In addition, there are more differences between the 27 EU Member States. This time, 13 member states oppose anti-dumping actions against Chinese shoes, indicating that there is great room for fragmentation.

Second, we should "win by chance".

Chinese shoe enterprises need to increase their R & D efforts, implement brand strategy, actively participate in international standard setting, increase their ability to cope with technical barriers, or bypass the third country to enter their market; when conditions are ripe, they can go directly to the European Union to run factories and no longer be subject to tariff restrictions.