Global Trade and Customs Journal

Volume 12 (2017)

Volume 12 (2017) / Issue 1

Minyou Yu, Jian Guan, 'The Non-Market Economy Methodology Shall Be Terminated After 2016' (2017) 12 Global Trade and Customs Journal, Issue 1, pp. 16–24

Abstract

Subparagraph 15(a)(ii) of China’s Accession Protocol (AP) permits the importing World Trade Organization (WTO) Members to use the nonmarket economy (NME) methodology to determine the normal value of Chinese imports under certain condition. This subparagraph will expire 15 years after China’s accession, i.e. 11 December 2016. The legal effect of the said expiration is under a heated debate. This article first clarifies why the market economy status (MES) and the NME methodology are separate issues. Then it examines the legal meaning and effect of provisions of paragraph 15 of the AP that will expire and those that will remain after 2016. This article concludes that the expiration of subparagraph 15(a)(ii) will terminate the NME methodology as well as Chinese producers’ burden of proof.

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ISSN: 1569-755X
ID: GTCJ2017002