Was ChAFTA designed to ensure that Australia always recognised China as a "market economy" despite the facts?

by Ganesh Sahathevan



Andrew and Maureen Robb are rumoured to be looking to move closer to the beach but only once they have sold their Cremorne Point home. Robb has been doing quite well out of his China contacts, 

so it is hard to understand why he would have a problem repaying a million dollar loan.

Australian manufacturers and consumers would be interested to know that India sells iron ore to China,and can impose impose steep  anti-dumping duties because it does not recognise China as a market economy.

Australia on the other hand assumes that it must assume that China is a market economy, so that we can export iron ore to China that the  Chinese desperately need. In fact, the Chinese Government is so enamoured with Australian iron ore and other resources it has had entities under its control buy as many Australian assets as they can. 

It does look as if ChAFTA was designed to ensure that Australia can never assume otherwise, despite the facts.Andrew Robb, and Peter Varghese must explain.

TO BE READ WITH 

India rejects market economy tag for China

2 min read . Updated: 18 Jun 2020, 01:05 AM ISTAsit Ranjan Mishra

• Govt will be able to impose steep anti-dumping duties on Chinese imports
• India must fulfil its obligation to WTO and recognize China as market economy, Chinese firms say

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India-China Face-Off IndiaChina

India on Monday rejected China’s demand to grant it market economy status, amid the ongoing face-off between the two armies along the Line of Actual Control (LAC). New Delhi will continue to treat its neighbour as a non-market economy, which allows it to impose steep anti-dumping duties on imports from China.

World Trade Organization (WTO) members are allowed to apply anti-dumping measures on any company if it exports a product at a lower price than its home market, and if the product threatens to impact the local industry.

China joined the WTO in December 2001 after years of negotiations on the condition that it will be treated as a non-market economy by other member countries for anti-dumping proceedings. A non-market economy refers to a country which has a complete or substantially complete monopoly of its trade and where all domestic prices are fixed by the state. While the 15-year period ended in December 2016, the European Union and the US have desisted from granting market economy status to China, citing wide-ranging price control on export commodities by China.

“India must fulfil its obligation to WTO and recognize China PR as a market economy status. Surrogate country methodology for China PR expired from 11 December 2016. After the expiry of China’s accession to WTO, it must be treated in same way as any other WTO member and, regardless of the domestic law of a particular member, imports from China PR must be demonstrated on the basis of Chinese prices and costs," Chinese companies submitted before the Directorate General Of Anti-Dumping And Allied Duties (DGTR), responding to anti-dumping investigations involving imports of organic chemical compound Aniline and anti-biotic Ciprofloxacin Hydrochloride.

India, however, said since Chinese producers failed to file relevant information to prove the market economy status, it will continue to treat it as a non-market economy. “The Authority notes that in the past three years, China PR has been treated as a non-market economy country in anti-dumping investigations by India and other WTO Members. In view of the same, the authority treats the subject country producers/exporters as non-market economy in the present investigation," DGTR said.