Tuesday, August 3, 2010

WTO regular crack pit China shoes


    Did not know whether the people also did remember in 2004 Spanish small town Egypt Qie that field burnt down the Chinese shoes' flaming fire. Now, the Chinese footwear product initiation's counter-dumping lawsuit is still a current Central Europe trade ties sensitive topic.


    On May 8, the WTO being established expert group tries China to sue European Union to dump a document to Hua Xiefan, Australia, Brazil, Japan, Turkey, the US, Vietnam, participates in the lawsuit with Colombia as the third party.


    Central Europe shoes war


    More than ten for years, European Union has taken each measure to carry on to its shoes business protects .2005 years on July 7, European Union to loses Ou Huaxie to carry on the counter-dumping investigation, and adjudicates in October 5, 2006, obtains the market economy treatment except a Chinese Enterprise, is punished leniently cuts by 9.7% counter-dumping taxes outside, other all enterprises are cut levy 16.5% counter-dumping taxes, the deadline 2 years, causes 1200 Chinese shoes business intensely less than .2007 year in January, Austria Kang, the peaceful horse, the golden shoe, the newborn HK dollar and so on Chinese shoes business to the European Union Court prosecution, requests to rule carries onJudicial review (other over a thousand shoes business draw rein).


    It is a pity, the Chinese shoes business's prosecution has not achieved anticipated goal .2008 year in October, this counter-dumping rules enters expired reexamination stage .2009 year in December, the European Commission by 14 ticket supports, 13 dissenting vote's voting result, decided lengthens this to rule the potency 15 months, the similar tax rate continues to Hua Xieyi to levy the counter-dumping tax.


    On February 4, China sues European Union, the words is fervent: European Union 2006 ruling and 2009 expired reexamination has violated WTO "Counter-Dumping Agreement" the nearly all core provision (including substantive provision and procedural provision). Includes specifically:


    1st, according to the European Union counter-dumping rule, levies the counter-dumping tax to the non-marketing country product, the tax rate in view of the entire country, not in view of concrete supplier, only if these suppliers proved that it meets the market economy condition which completely European Union stipulated. China believed that European Union's procedure has violated WTO "Counter-Dumping Agreement" requests to the concrete supplier to determine the counter-dumping tax rate separately the stipulation; At the same time, European Union to the non-marketing country product's taxation method is prejudice, has violated the WTO most-favored nation treatment principle.


    2nd, European Union 2006 ruling, not according to WTO "Counter-Dumping Agreement" and "Chinese Being WTO entry Protocol" the request, requests to certain Chinese suppliers to give the market economy treatment the application to carry on the checking; When determination dumping existence and dumping profit margin, the computational method is wrong; In determined European Union shoes business receives when harm, has not carried on the objective and fair the appraisal; In counter-dumping investigation period, reasonable has not presented evidence the opportunity for China, the transparency is insufficient, as well as the method of sampling is unreasonable; The ruling result does not have the full statement fact and the quotation law.


    European Union 2009 expired reexamination start-up procedure is illegal, takes a sample not legitimately, has not verified the evidence objectively, has been redundant 2006 wrong procedure.


    Multi-country bitter experience counter-dumping


    After European Union, Brazil in December 31, 2008 decided that carries on the counter-dumping investigation to the Chinese shoes, on September 16, 2009 decided that levies 12.47 US dollar/pair of temporary counter-dumping taxes, on March 4 decided levies 13.85 US dollar/pair of counter-dumping taxes, the term of validity 5 years.


    Imitation keeps coming in a steady stream, the Argentine Government also carries on the counter-dumping investigation in February, 2009 to the Chinese shoes, in July starts to levy the temporary counter-dumping tax in the same year, stipulated that imports Hua Xie the price not to be lower than 15.5 US dollars/pairs.


    But Canada as early as levied 33% counter-dumping tax in 2000 to the Chinese revertex waterproofing shoes and the shoe sole; on October 21, 2009, decided that carries on the counter-dumping investigation once more to this kind of product, escapes by luck besides 6 Chinese Enterprises, other enterprises are levied 49% counter-dumping tax.


    Under encircles, Chinese shoes volume of exports inevitably sharp decline. According to the Chinese Light industry Import and export Chamber of commerce statistics, in 2009 our country footwear product accumulation export amount is 28,010,000,000 US dollars, dropped 5.54% compared to the same period, the leather shoes decline rate is biggest, reaches 14.83%. according to the Chinese shoes net statistics, European Union takes the anti-dumping measures after Hua Xie, Hua Xieshu the Europe aggregate amount dropped 15%; for 3 years receive from the peak time 2,080,000,000 euros drop to 1,780,000,000 euros. China Tannery industry Association's statistics revealed that the counter-dumping tax causes China to lose the European leather shoes output to reduce 20%, reduces the approximately 40,000,000 pairs, only this item causes China the approximately 20,000 workers to lose the work.


    The WTO rule saves the crack


    Actually, with the most domestic public opinion expectation's difference, whether the Chinese shoes to win in the lawsuit, the key is not depending on the subjective endeavor, but is WTO "Counter-Dumping Agreement" the objective existence crack and the slight defect.


    According to WTO "Counter-Dumping Agreement", if is investigated product from non-marketing country, when computation production cost, is not according to the producer country actual data, but uses with this country close substitution country (marketing country) data. This time, European Union is calculates China's shoemaking cost according to Brazil's production cost.


    But because the national condition is different, Brazil's unit cost is higher than China, in addition also in dumps to Hua Xiefan, the result was artificial raised China's production cost, and corresponding raised the dumping profit margin. This is unfair to China. Our country in Doha round negotiations period suggested many times cancels this rule, but after-cropped recently looking from WTO the revised draft, this rule still exists.


    Also for instance, the trade activity is permits zero profit sale and the second quality item sale, but WTO "Counter-Dumping Agreement" had not stipulated regarding this, investigation country when computation production cost, does not consider the second quality item, regards as all products high quality, and adds on a profit space, similarly artificial raises the production cost and the dumping profit margin. Moreover, agreement in determination investigation country's similar industry whether to suffer time the harm, has not calculated the harm scope the stipulation; In the investigation procedure aspects, gives the investigation country very big freedom to decide after deliberation power and so on.


    These cracks and the slight defect, cause the counter-dumping case quantity to be big, the question were many, has become the unyielding person who most difficult to gnaw. The reason that but the crack and the slight defect the existence, is not because how the member nation doesn't know standard, but because the US-led developed country is not willing to change the present situation, wants to use these cracks to provide the protection promptly to the domestic related industry. Because the US is playing the leading role in the WTO negotiations, in addition United States Congress's hardball, therefore the existing counter-dumping system will also continue the very long times.


    Certainly, this did not mean that we may hold the pessimism, on the contrary, answers a charge is positively very essential, European Union's certain procedures constituted the discrimination truly to China, also has violated the treaty stipulation, lost a lawsuit unavoidably. , The lawsuit process is more importantly more important than the result, may let the EU commission at least later have restraining to the Chinese product counter-dumping investigation.


    Also some point needs to pay attention, even if has won this lawsuit, also did not mean that the Chinese shoes may travel freely in Europe. European Union will also continue to the native place shoes business to protect, but will be the degree is different.


    The Chinese shoes' road of win


    In recent years the Central Europe economics and trade development was rapid, China was the European Union second big trade partner and the biggest import origin country. According to the European Union official website reported that in 2008 starts the Central Europe high-level economics and trade dialog progress is smooth, in 2009 China exports 214,700,000,000 euros cargos toward European Union, imports 81,700,000,000 euros, the trade surplus is very big. This environment requests Chinese and the Chinese Enterprise processes European Union instead to lean closes a case must have the festival rational.


    First, should be divided and demoralized. European Union dumps to Hua Xiefan is take harms the native place consumer and importer's benefit as the price, the latter must pay for the counter-dumping tax, causes their repugnance inevitably. The Chinese Enterprise should use these importer and the consumer mood fully, with theirs chamber of commerce multi-communication contacting.


    Compares with the US, European Union's policy is quite temperate, in Doha round negotiations has advocated counter-dumping needs to consider the social public interest; Between the European Union 27 member nations the difference are in addition many, this time has 13 member nations to oppose that continues to dump to Hua Xiefan, explained is divided and demoralized has the very big operation space.


    Next, should take skillfully subdues. Chinese shoes business needs to increase the research and development dynamics, the carrying out brand strategy, participates in the international standard formulation positively, increases deals with the technical barrier ability; Or bypasses the third country to enter their market; When conditions are ripe, may also run factory directly to European Union, no longer receives the customs duty restriction. These suggestions similarly are also suitable for Canada, Brazil and Argentina.

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