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Yen, Huai-Shing、Wang, Yu-Shung、Cheng, Yun-Hsing
2023/08/09
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Improving the Trade Remedy System: An Analysis for Taiwan


Publication2020.12

Principal Investigator顏慧欣Yen, Huai-Shing

Researchers王煜翔Wang, Yu-Shung、鄭昀欣Cheng, Yun-Hsing



The research selected the US, EU and India—three WTO members with active use of anti-dumping (AD) measures—as case studies, and analyzed the structure of their trade remedy authorities, pre-investigation work, investigation procedure, as well as whether the number of initiations and measures imposed are corelated. A closer look into the trade remedy actions by the US (728 investigations, 502 measures, successful application rate: 69%), the EU (521 investigations, 332 measures, successful application rate: 63.7%), and India (972 investigations, 706 measures, successful application rate: 72.6%) indicates that India comes out top among the three. A separate trade remedy analysis reveals that the number of initiations and use of AD measures by India have exhibited year-over-year growth, while the figures for the US have remained at the same level. In comparison, a decreasing trend year by year has been observed for trade remedy actions by the EU. Nevertheless, after reviewing the development of AD regulations across these countries, the study observed no distinct corelation between the initiation procedure and frequency of AD measures, whose application remains largely dependent on the administrative discretion in the investigation procedures of the competent authorities.

Taiwan is not an active user of AD measures, partly due to the strict product scope requirements in the application form at pre-initiation stage, according to domestic industry feedback gathered in the study. The product scope applied for is nearly the same as that for final implementation. In other words, when an applicant presents a prima facie case, the burden of defining the product involved in the case and producing proof is extremely heavy. The applicant might therefore consider it difficult to achieve the desired outcome, or find the procedure too challenging. Additionally, with the Ministry of Finance being the main investigation body in Taiwan, and the International Trade Commission of the Ministry of Economic Affairs playing a relatively minor role, the survey respondents observed that the Taiwan government carries out AD investigations as if they were fiscal policies, failing to be flexible in the use of such trade remedy tool. As duties imposed affect the distribution and redistribution of the citizen's property rights, the Ministry of Finance is naturally cautious in exercsing fiscal discipline to make a judgment. However, considering the AD mechanism as part of the national trade policy enables policy makers to think and prioritize differently, leading to increased agility and flexibility in responding to global market changes and meeting the needs of domestic sectors. As the country with the most filed cases, India apparently applies AD actions in a more flexible manner, despite a biased method used in the iniation of certain cases.

Chinese:https://web.wtocenter.org.tw/Page/91/388797