Treatment of Non-market Economies in Anti-dumping Proceedings: The Mexican Approach

Bahri, Amrita

doi:10.1007/978-981-13-1331-8_10

Amrita Bahri^3,4

434 Accesses

Abstract

Mexico has employed special methodologies for price-determination and calculation of dumping margins against Chinese imports in almost all anti-dumping investigations. This chapter attempts to explain and analyze the NME-specific procedures employed by Mexican authorities in anti-dumping proceedings against China. It also clarifies the Mexican standpoint on the controversial issue of how the expiry of Section 15(a)(ii) of China’s Accession Protocol to the WTO impacts the surviving parts of Section 15 of the Protocol, and whether Mexico has changed its treatment towards Chinese imports following the expiry of Section 15(a)(ii) post 12 December 2016.

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Notes

1.
International Monetary Fund, Trade Developments in the Latin America and the Caribbean, Background Papers (Mar., 2017).
2.
World Bank Group, Mexico Overview (Apr. 16, 2018), http://www.worldbank.org/en/country/mexico/overview.
3.
Oliver Houlcroft, How Mexico Became an International Trade Leader, Bizlatin Hub (Mar. 1, 2018), https://www.bizlatinhub.com/mexico-international-trade/.
4.
World Bank Group,, World Bank Database 2016 (Mar. 5, 2018), http://databank.worldbank.org/data/home.aspx.
5.
World Bank Group, World Integrated Trade Solution, (Mar. 5, 2018), https://wits.worldbank.org/CountrySnapshot/en/MEX/textview.
6.
Ibid.
7.
World Bank Group, World Integrated Trade Solution, (Mar. 5, 2018), https://wits.worldbank.org/CountryProfile/en/Country/MEX/StartYear/1990/EndYear/2016/Indicator/NE-IMP-GNFS-ZS.
8.
M. Angeles Villarreal, NAFTA and the Mexican Economy, Cong. Res. Serv. (Jun. 3, 2010), https://fas.org/sgp/crs/row/RL34733.pdf.
9.
A trade practitioner with the experience of dealing in anti-dumping matters in Mexico disagrees with the characterization of this system as “strong and robust”, and opines that there are many flaws in the system that needs to be overcome. [Email conversation with a trade lawyer, 22 March 2018]. This is not the focus of the chapter, and hence is not dealt with any further.
10.
World Trade Organization, Statistics on Anti-Dumping, World Trade Org. (Feb. 28, 2018), https://www.wto.org/english/tratop_e/adp_e/adp_e.htm. The data reflects the number of Anti-dumping Initiations as reported by members to WTO. The covered time range is 01/01/1995 - 31/12/2016.
11.
Id.
12.
See Fig. 2.
13.
Ministry Of Economy, The Official Statistical Report: Industry And Commerce/ International Commercial Practice Unit Of Mexico (Jun., 21, 2015), https://www.gob.mx/se/acciones-y-programas/industria-y-comercio-unidad-de-practicas-comerciales-internacionales-upci.
14.
Id.
15.
World Bank Group, World Integrated Trade Solution 2015, (Feb. 28, 2018), https://wits.worldbank.org/CountryProfile/en/Country/MEX/Year/2015/Summarytext.
16.
Political Constitution of the United Mexican States, CP, art. 133, Diario Oficial de [a Federaci6n [DOF] (Feb. 5, 2017) (Mex.).
17.
Marrakesh Agreement Establishing the World Trade Organization, Apr. 15, 1994, 1867 U.N.T.S. 154, 33 I.L.M. 1144.
18.
Agreement on the Implementation of Article VI of GATT 1994, Apr. 15, 1994, 1868 U.N.T.S. 201, Marrakesh Agreement Establishing the World Trade Organization, Apr. 15, 1994, 1867 U.N.T.S. 154, 33 I.L.M. 1144.
19.
Ley De Comercio Exterior § 1–98 (1995) (Mex.). [hereinafter FTL].
20.
Reglamento De La Ley De Comercio Exterior § 1–215 (2014) (Mex.). [hereinafter Regulations].
21.
FTL, supra note 19, art. 5.
22.
FTL, supra note 19, art. 33. The term NME does not exist in the Mexican legislation. It is nonetheless used in this chapter interchangeably with centrally planned economies.
23.
This is in consonance with World Trade Organisation, Protocol on the Accession of the People’s Republic of China, art. 15 (a)(ii), WTO Doc. WT/L/432 (Nov. 23, 2001) [hereinafter Chinese Accession Protocol].
24.
FTL, supra note 19, art. 31.
25.
Id., arts. 33 and 48.
26.
Chinese Accession Protocol, supra note 23, art. 15(a)(ii).
27.
The method is provided in art. 33 of FTL, supra note 19 and art. 48 of the Regulations, supra note 20. Surrogacy method as employed by UPCI is explained in the following section.
28.
Interview with a trade lawyer; confirmed in interview with government officials [details withheld].
29.
Notice for Initiation, Polyester short fiber (China) § 24 (J, K), 212, (Secretaria De Economia, Feb. 5, 2018) (Mex.), http://www.contactopyme.gob.mx/upci/paginas/3187.pdf.
30.
Jorge Miranda & Eduardo Diaz-Gavito, Mexico in Guide To International Anti-Dumping Practice 433–34 (Derk Bienen eds., 2013).
31.
The time range covered is from 1 January 2007 to 30 June 2017. The data records original investigations only. Review and subsequent proceedings are not taken into account. No information is provided on the use of surrogate country for most of the investigations reported in the semi-annual reports for the years 2007 and 2008. Hence, information relating to those investigations is deleted from this table. World Trade Organisation, Notifications by individual members on anti-dumping (1 Jan. 2007–1 Jun. 2017), https://docs.wto.org/dol2fe/Pages/FE_Search/FE_S_S006.aspx?Query=@Symbol=%20g/adp/n/*%20and%20%20@Symbol=%20mex&Language=ENGLISH&Context=FomerScriptedSearch&languageUIChanged=true.
32.
Interview with government officials (details withheld).
33.
Interview with government officials (details withheld).
34.
Notice for Initiation: Polyester short fiber (China) 197–212 (Secretaria De Economia, Feb. 6, 2018), (Mex.), http://www.contactopyme.gob.mx/upci/paginas/3187.pdf.
35.
Notice for Initiation: Bicycles for Children (China) (Secretaria De Economia, Mar. 5, 2012), (Mex.). http://www.contactopyme.gob.mx/upci/paginas/1611.pdf.
36.
Id., ¶ 43.
37.
Id., ¶ 42.
38.
Interview with government officials (details withheld).
39.
International Bar Association, Report on Anti-Dumping Investigations Against China in Latin America, 13 Int’l B. Ass’n, (Feb. 29, 2018) https://www.ibanet.org/ENews_Archive/IBA_Jan_2010_ENews_AntiDumping_investigations_against_China.aspx.
40.
Request for Consultations from China, European Union-Measures Related to Price Comparison Methodologies, WTO Doc. WT/DS516/R (Dec. 12, 2016); Request for Consultation from China, United States-Measures Related to Price Comparison Methodologies, WTO Doc. WT/DS515/R (Dec. 12, 2016).
41.
EU submissions: Request for Consultation, European Union-Measures Related to Price Comparison Methodologies, 9, 33, WTO Doc. WT/DS516/R (Dec. 12, 2016), http://trade.ec.europa.eu/doclib/docs/2017/december/tradoc_156476.pdf, http://trade.ec.europa.eu/doclib/docs/2017/november/tradoc_156401.pdf; United States Third Party Legal Interpretation document, European Union-Measures Related to Price Comparison Methodologies, 38, WTO Doc. WT/DS516/R (Dec. 12, 2016), https://ustr.gov/sites/default/files/enforcement/WTO/US.Legal.Interp.Doc.fin.%28public%29.pdf.
42.
Chinese Accession Protocol, supra note 23, Annex 7: Reservations by WTO Members.
43.
International Bar Association, supra note 39, at 25.
44.
Acuerdo entre el Gobierno de los Estados Unidos Mexicanos y el Gobierno de la Republica Popular China en material de medidas de remedio comercial (Jan. 29, 2009), (Mex.), https://www.gob.mx/cms/uploads/attachment/file/50842/A497.pdf.
45.
Interview with government officials (details withheld).
46.
Interview with government officials (details withheld).
47.
The revised and the old official templates are on file with the author.
48.
Notice of Initiation: Polyester short fiber (China), Diario Off. (Secretaría de Economía, Feb. 6, 2018), http://www.contactopyme.gob.mx/upci/paginas/3187.pdf.; Notice of Initiation: Metallic Plastic Balloons (China), Diario Off. (Secretaría de Economía, Jun. 26, 2017), (Mex.), http://www.contactopyme.gob.mx/upci/paginas/3158.pdf; Notice of Initiation: Micro-wires for Welding (China), Diario Off. (Secretaría de Economía, Aug. 10, 2017), (Mex.), http://www.contactopyme.gob.mx/upci/paginas/3173.pdf.
49.
Notice of Initiation: Polyester Short Fiber (China), Diario Off. (Secretaría de Economía, Feb. 6, 2018), (Mex.), http://www.contactopyme.gob.mx/upci/paginas/3187.pdf.
50.
Id., ¶ 24.
51.
Id., ¶¶ 187, 196, 212.
52.
Id., ¶ 24.
53.
Id., ¶¶ 197–212.
54.
Notice of Initiation: Micro-wires for Welding (China), Diario Off. (Secretaría de Economía, Aug. 10, 2017), (Mex.), http://www.contactopyme.gob.mx/upci/paginas/3173.pdf.
55.
Id., ¶ 21.
56.
Id., ¶ 21.
57.
Id., ¶ 91.
58.
Id., ¶¶ 89, 90.
59.
Id., ¶ 97.
60.
Id., ¶¶ 57–59.
61.
Notice of Initiation: Metallic Plastic Balloons (China), Diario Off. (Secretaría de Economía, Jun. 26, 2017), (Mex.), http://www.contactopyme.gob.mx/upci/paginas/3158.pdf.
62.
Id., ¶ 18.
63.
Id., ¶ 59.
64.
Id., ¶ 59.

Acknowledgements

I am indebted to the Mexican Ministry of Economy and in particular the UPCI officials who have provided valuable insiders’ insight to this research project. I am also thankful to private trade lawyers who have enriched this research with their guidance and views. Special thanks to Jorge Miranda for his feedback. Also, thanks to my brilliant research assistants, Lorena Martinez and Emilio Aguilar Castellano, who have contributed to the statistical analysis and translation work that was required for this chapter. All interviewees remain anonymous. All errors and omissions are author’s own.

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ITAM University, Mexico City, Mexico
Amrita Bahri (Assistant Professor of Law)
WTO Co-Chair for Mexico, WTO Chair Program, Mexico City, Mexico
Amrita Bahri (Assistant Professor of Law)

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Centre for Trade and Investment Law, Indian Institute of Foreign Trade, New Delhi, Delhi, India
James J. Nedumpara
Faculty of Law, UNSW Australia, Sydney, NSW, Australia
Weihuan Zhou

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Bahri, A. (2018). Treatment of Non-market Economies in Anti-dumping Proceedings: The Mexican Approach. In: Nedumpara, J., Zhou, W. (eds) Non-market Economies in the Global Trading System. Springer, Singapore. https://doi.org/10.1007/978-981-13-1331-8_10

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DOI: https://doi.org/10.1007/978-981-13-1331-8_10
Published: 21 September 2018
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