The European Commission is exploring a new methodology for handling antidumping and subsidy cases in a move meant to ensure China does not gain market economy status, but fears have quickly surfaced that the Commission's pending proposal may drop the European Union's market economy criteria.
[Daily News| July 20, 2016 |Inside US Trade]
European Trade Commissioner Cecilia Malmstrom said the EU's 28 commissioners on July 20 discussed eliminating its two-list system, which labels a country as either a market economy or non-market economy (NME), and instead shifting to a single methodology for antidumping and subsidy investigations that applies to all nations in a manner meant to keep duties at current levels. Currently, different methodologies are applied depending on which list a country is on.
The Commission is considering changes in response to the expiration of a provision in China's World Trade Organization accession protocol in December, which China interprets as meaning non-market economy criteria can no longer be applied for antidumping and subsidy cases.