Everyone agrees that China is not a market economy but there is still no agreement on how to measure dumping from China when costs and prices are not market driven. In simple terms dumping happens when a producer sells in the market of origin at a price higher than the price charged in the export market. The question is how can you measure the price in China if the market is distorted and is not market based.
The Commission came up with a proposal on how to do this in November 2016 and the Council and the European Parliament, the EU’s co legislators, gave their first opinions on this proposal in April and June respectively. Both opinions were different with both institutions introducing amendments which are not compatible with each other. Now the Council, the Parliament and the Commission must sit together to negotiate an agreed compromise text. Negotiations will continue over the summer with the Commission hoping to conclude the Trilogue by mid-September so as to bring the new rules into effect before the end of 2017.