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Consider the following statements with respect to Market Economy Status and Non Market Economy:
1.The World Trade Organisation has defined a country to be Non Market economy, if it doesn’t operate on market principles of cost and pricing structure.
2.India, US and European Union doesn’t recognize China as a Market Economy.
3.If China is treated as Market Economy Status then the cost and prices of the Chinese Producers would have to be accepted for determination of the normal values and dumping margins.
How many of the statements given above are correct?
Only One
Only Two
All Three
None
2 and 3 only
The World Trade Organisation (WTO) defining a country as a Non-Market Economy (NME): The first statement is not entirely accurate. The World Trade Organization (WTO) does not explicitly define a country as a Non-Market Economy (NME). However, the concept of NME is used in anti-dumping investigations, and countries are considered NMEs if their economies do not operate on market principles of cost and pricing structure.
Recognition of China as a Market Economy by India, US, and European Union: This statement is correct. As of the last available information (knowledge cutoff in January 2022), several countries, including India, the United States, and the European Union, have not recognized China as a market economy. This is particularly relevant in anti-dumping investigations.
Treatment of China as a Market Economy Status (MES): If China were to be treated as having Market Economy Status, the cost and prices of Chinese producers would indeed have to be accepted for the determination of normal values and dumping margins. This is because, under Market Economy Status, the prices and costs of the exporting country are generally used to assess whether goods are being dumped or not.
Therefore, the correct answer is 2 and 3 only.
By: Kamal Kashyap ProfileResourcesReport error
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