by K. William Watson
Cato Institute
October 29, 2014
Policy Analysis
The United States has a choice to make. The end of China’s Non-Market Economy status in December 2016 will necessitate a change in U.S. antidumping policy. Whether that change is for the better is up to U.S. policymakers. Essentially, the choice is between good faith compliance with global trade rules or stubborn adherence to illegal protectionism. Law and logic are both on the side of ending NME treatment altogether. Instead of spending years litigating at the World Trade Organization, trying to find the least illegal way to discriminate against Chinese imports, the United States should embrace the reality of China’s economic transition and WTO membership. Accepting the end of NME treatment even before the deadline would strengthen the U.S. position in the inevitably contentious U.S–China trade relationship and would provide a much-needed boost to the United States’ role as a leader in the global trading system.



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