The impact of anti-dumping and anti-dumping regulations between South Africa, the European Union and China : a comparative study

Abstract

This mini-dissertation critically analyse the use of anti-dumping regulations between South Africa, the European Union and China. South Africa, the European Union and China are all members of the World Trade Organisation. Dumping is legally defined in terms of Article VI of the General Agreements Act on Tariffs and Trade as “a product that is exported from one country to another at a price less than a price at which like goods are sold from domestic consumption in the exporting country”. The only way to protect a country from dumping is to use their universal, legal instruments set out by the World Trade Organisation, namely the most commonly used trade remedy, anti-dumping, countervailing and subsidies and lastly safeguards. On the 14th of November 2003, South Africa promulgated their anti-dumping regulations that had a broader overview regarding dumping than the previous legislation on this matter. Although there had been several opportunities to properly legislate anti-dumping substance and procedures, the existing South African legislation including the International Administration Act, still does not conform to the requirements and standards of the World Trade Organisation. In the early 20th Century, a number of European countries came together and formulated an Anti-dumping Agreement and was also known as the European Union. The European Union is seen as one of the biggest trade actors in the world. In 1994 the European anti-dumping laws were laid down. Regarding to non-market economies, the European legislation did not have a lot of change during the last decade. The European Union conforms to the requirements and standards set out by the World Trade Organisation. On 25 March 1997 the state council of the People’s Republic of China promulgated anti-dumping and countervailing regulations. At this point in time, China is undergoing an economic transformation, but before China plays an important part in the World Trade Organisation, it must learn to use the World Trade Organisation and integrate the World Trade Organisation laws that are directly related to China by looking at the international trade’s advantages and disadvantages. China is under severe dumping and anti-dumping status quo, which is directly paired with the development of China's anti-dumping legislation where new demands are being brought forward. South Africa’s relationship regarding China, lead to a Memorandum of Understanding in December 1999 where the regional trade protocol was signed between the two countries in terms of textiles, that South Africa won’t impose any duties against China until December 2013, but antidumping duties can be imposed on any other country. South Africa and the European Union have not yet created such a relationship of that between South Africa and China, but South Africa and the European Union, both signed the Trade Development and Co-operation Agreement. This was the first bi-lateral framework agreement between South Africa and the European Union. The final ratification occurred in 2004 and was revised in March 2007. The international trade war against China and the European Union has been won by China, because the WTO recently came to the conclusion that the European Union’s trade policies against China were discriminatory. It should be mentioned that these three countries will play an important role in the development and implementation of international trade relations and regulations and by their collusion, it could only improve the visions of international trade.