Calculation of dumping margins : EU and US rules and practices in light of the debate on China's market economy status : in-depth analysis

The calculation of the dumping margin is fundamental for two reasons in antidumping investigations: firstly it is a fundamental requirement for the introduction of an antidumping measure; in order to find dumping the dumping margin has to be greater than de minimis (i.e. less than 2%); secondly it defines the upper boundary of the antidumping duty if applied. The method for dumping margin calculations differs depending whether the country of export is considered a market economy or a non-market economy. This paper looks at the differences in the methods for calculation of dumping margin and in particular normal values in investigation against exporters in a market economy and against exporters in non-market economies. It also looks at the differences in the European Union and United States approaches towards non-market economies, and uses empirical analysis to see how different methodologies are used in investigations against China, before concluding on the policy options provided for in the framework of the 2016 amendment of section 15 to China's Protocol of Accession to the World Trade Organization.