The European Union has devised a new way of calculating anti-dumping duties. This method is expected to avoid any significant market distortions. It may also overcome the dichotomy between market economy and non-market economy. Its rationale is to avoid unfair competition for workers and European firms.

The method will specify in detail the significant distortions to competition under which exceptional duties can be levied, the role of the government, the economy, lack of bankruptcy legislation, copyright’s protection and intellectual property. In addition, the burden of proof is not borne by European companies, but by those exporting to the EU area.

China asked to be considered as a market economy: If this status were recognised, lighter duties would be applied to its goods.

EU overall imports reached 468.2 billion euro in the first quarter of 2017.

The EU applies trade defense measures such as anti-dumping measures, anti-subsidy measures or safeguards when EU industry is harmed by dumped or subsided imports. Some time back the European Union set provisional import duties on steel coming from China to counter what it says are unfairly low prices. China is the source of 50 per cent of the world’s steel.

The EU is a customs union with a common tariff on imports from non-EU countries.