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trade friction estimate also to increase from now on

October 1st, 2009 Leave a comment Go to comments

Legal system network Reporter Xin Hong

From September 26, US levies additional taxes 35% punitive customs duties to the Chinese tire. The tire writs request for commendation of a subordinate especially what is the behind?

Reporter from recently “under the financial crisis impact’s global trade dispute promoted by the roentgen Law office and the SALANS Law office convention with the Chinese Enterprise’s dealing with strategy” at the seminar learned, the US wanted the value was higher than people’s imagination by far.

Behind special writing request for commendation of a subordinate deep level question

Guarantees is especially the specific product transition safeguard mechanism and the special safeguard mechanism abbreviation, with general safeguard mechanism, no matter which country the product is different from, it only aims at the Chinese product, and puts on record the threshold to be low, has the lethality.

It is reported that so long as creates the market harassment, writs request for commendation of a subordinate especially may put on record, the harassment standard is anything, WTO in the rule the unification standard, has not been completely each country stipulated according to the national law, the concept is general, and the capriciousness is very big.

In adopts in the measure, the safeguard mechanism generally may use the customs duty and quantity method, but guarantees especially levies additional taxes the customs duty directly. The department of commercial affairs officials indicated that speaking of the tire enterprise, “35% customs duties were very basically difficult to export”.

What is worse, what writs request for commendation of a subordinate especially is “the windvane” the function, possibly inspires the domestic other industries and other countries, causes the chain-reaction, because “this move of easy to use”, and in aspect costs and so on data collection, attorney expense also investigates compared to counter-dumping lowly.

Other countries may also use guarantees in especially the investigation “the trade shift” the simple provision, namely tire product, since cannot export the US, shifts to other countries is the reason inevitably, does not use the investigation, directly takes the measure. It is reported that at present, Mexico had such plan, American other industries also possibly with the wind, at present the Textile enterprise handed in the application.

after “the tire writs request for commendation of a subordinate especially opens the opening, will make present’s case to be easier to take the measure.”The department of commercial affairs concerned people in charge expressed.

He said that although the Chinese side and the US side have carried on the multiwheel consultation, and made the massive laws to contradict, American specialized attorney also thought that writing request for commendation of a subordinate was

especially “the very bad fact, the very weak evidence”, 33 American associations wrote a letter for Austria Pama, opposed the punitive customs duty, but the result was contrary to what expects, the primary cause was the US side asks a price is very high: Not only need solve the tire problem, US side hoped that the Chinese side solves its long-term attention deep level problem, like cancels the tire enterprise’s tax reimbursement for export, cancels the steel and iron product of chemical industry the tax reimbursement for export, all raw material export restriction, tax reimbursement for export, export request (majority of not), cancels the tire subsidy (in fact government subsidy) and so on wholesale not to plan, touches the Chinese economic system directly, is simply asks an outrageous price.

Because both sides know the disparity to be big, several round consultation has not achieved consistently, in the domestic politics and so on under various aspects factor, the US decided that levies additional taxes the punitive customs duty to the tire enterprise.

The professional appraised that this was one step “the dangerous chess”. It is reported that on September 21 European Union asked whether the enterprise does want with the wind, unexpectedly the European Tire Association not to approve, expressed that “does not need to initiate the investigation, we very good”.

The financial crisis deepens the trade friction

Statistics indicated that the double zed investigation amount which initiates to China amounts to 40,000,000 US dollars European Union January to July, in quantity drops 68% compared to the same period, in the amount drops 99% compared to the same period, the reason that looks like is at “controllably” the condition, World Trade Organization Research board executive member of the council Zhou Shijian analyzes, because the time difference reason the large-scale appearance, the financial crisis has not deepened the trade friction inevitably at present, he estimated in the following two years China will face the trade friction will also increase.

The attending professional suggested that should aim at the different country trade friction the characteristic to make deals.

It is reported that Canada is the trade protection color thick country similarly, in recent years not only “double zed” the case assumed the trend of escalation, our country or the Canadian biggest counter-subsidy case goal country, often became other countries to propose the counter-subsidy investigation important basis.

Long-term proxy case’s roentgen Law office partner Lei Song indicated that the US and Canada adopt in the trade relief measures also has the common feature. If equates the State-owned business in the Chinese government, so long as the state-owned shares accounts for above 5%, then thought that has the incidence relation, even if has purchased State-owned business’s raw material, also thought that has the subsidy nature.
Obtains the market economy status to deal with the double zed investigation regarding the enterprise is very important, but Canada in the section20 investigation believed that China through 25 plans, the steel and iron industrial policy, various provinces plan and so on macroeconomic policy has intervened the product price directly, even in some cases by upstream industry “non-market economy” the legal precedent, denies the downstream industry for the market economy profession.

The thunder praises through these cases discovered that Canada and the US are day by day severe to China’s counter-subsidy and the market economy status’s investigation, the wrong applicable legislation, the Enterprise answers a charge for China brings the enormous challenge, also to later “double zed” investigates the bad exemplary role, the government and the enterprise should key pay attention and counterattack.

But European Union regarding in market economy status recognizing, also often because of has the state-owned shares to deny. Roentgen Law office partner Pu Lingchen introduced that European Commission market economy standard’s first was “the remarkable state intervention”. Analysis these years’s case, some enterprises, because has 47.18% state-owned shares to consider the national remarkable intervention or the hindrance company decision-making, but also some enterprises, because the principal shareholder is the State-owned business, the principal shareholder is Deputy to the National People’s Congress, or the board of directors members before the remanufacture by the national appointment, the board of directors members delegate by the state shares shareholder, even the company had not stipulated that the shareholder meeting is lowest the quorum, is also considered the existence state intervention the risk.

Recently the European Union trade protective measures also assume the diverse tendency. If in the seamless steel pipe which exports to China raises the rebellion to dump in a document, European Union cites the legal provision which not uses, the achievement takes the measure by “the harm threat” the reason.

Roentgen Law office partner Liu Jianwei analyzes, the developing country trade relief measures present the different characteristic: Puts on record unreasonable burden which verifies not strictly, presents evidence, as well as in investigation taking advantage of procedure denial entity, to the market economy recognized that the reason disclosure is not full, is too arbitrary, the developing country creates the impression which since long to the human one kind not standard, answers a charge wins with difficulty, but he thought that this should not affect the Chinese Enterprise to answer a charge the determination, must pay attention to the application law to contradict, the field dialog, the government negotiation and so on multi-channel to solve the problem.

Looks like in the association, the different profession has the different effective measure. China Iron and steel industry Association market investigation and study department assistant director the Wujing crystal indicated that at present some “the alternative country” initiates the investigation repeatedly, if India and Russia, its legislation and the practice are relatively quite rough, the procedure is not transparent, for deals brings the very major difficulty, but also has “the coin other aspect”, namely the legal slight defect is obvious, government negotiation effect.

It is reported that these year steel and iron association discovered in accepting a challenge that hits the dumping profit margin to be very difficult to hit, wins is on profession harm contradicting.

Zhou Shijian told the reporters, the market economy status is reduces the trade friction the key. It is reported that has 79 countries to acknowledge that at present China market economy status, but main countries and so on US, Europe did not acknowledge, can only in the case the profession or the enterprise strives for separately. If the US side acknowledged that China market economy status, China instead leans closes a case can reduce half.
Origin: Legal system network – - legal system daily paper

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