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eement resolved this issue by allowing commitment but still protect its industries takes effect six months later -- but the
other WTO member countries to use from Chinese overcapacity being dumped effect would be significant. While the
special tariff calculations, known in the in the US market. As a consequence, this United States would no longer face dispute
United States as nonmarket economy issue is also likely to introduce strains in settlement cases on the issues noted above,
(NME) calculations, to determine the value the commercial relationship and China will tariffs would increase on imports from
of antidumping tariffs to apply to Chinese likely bring (and win) a case against the trading partners that do not have free
goods sold at unfairly low prices for 15 United States at the WTO. trade agreements with the United States
years. That provision expires December and on US exports to those countries.
11, 2016. Withdrawal from the WTO According to the Peterson Institute
for International Economics, about 60
The Obama administration has indicated As a candidate, Trump suggested that the percent of US trade is conducted with
it is likely to leave the decision on how United States should withdraw from the non-FTA countries. In addition, market
to proceed on this issue to the next WTO if it could not renegotiate the terms access for American companies’ goods and
president. Given the positions President- of its membership. He made similar points services in any of those markets would
elect Trump has taken on other China about the need to renegotiate the North be significantly reduced, since the WTO’s
trade matters, however, it seems likely American Free Trade Agreement (NAFTA). agreements provide preferential treatment
that he will maintain the use of NME for companies from member countries.
calculations, rather than pursue an Leaving the WTO is a simple process
alternative methodology5 that would -- Article XV of the agreement stipulates
allow the United States to honor its WTO that countries must notify WTO Director
General in writing and the withdrawal
5 alternative methodology: https://www.uschina.org/
sites/default/files/NME.pdf
other WTO member countries to use from Chinese overcapacity being dumped effect would be significant. While the
special tariff calculations, known in the in the US market. As a consequence, this United States would no longer face dispute
United States as nonmarket economy issue is also likely to introduce strains in settlement cases on the issues noted above,
(NME) calculations, to determine the value the commercial relationship and China will tariffs would increase on imports from
of antidumping tariffs to apply to Chinese likely bring (and win) a case against the trading partners that do not have free
goods sold at unfairly low prices for 15 United States at the WTO. trade agreements with the United States
years. That provision expires December and on US exports to those countries.
11, 2016. Withdrawal from the WTO According to the Peterson Institute
for International Economics, about 60
The Obama administration has indicated As a candidate, Trump suggested that the percent of US trade is conducted with
it is likely to leave the decision on how United States should withdraw from the non-FTA countries. In addition, market
to proceed on this issue to the next WTO if it could not renegotiate the terms access for American companies’ goods and
president. Given the positions President- of its membership. He made similar points services in any of those markets would
elect Trump has taken on other China about the need to renegotiate the North be significantly reduced, since the WTO’s
trade matters, however, it seems likely American Free Trade Agreement (NAFTA). agreements provide preferential treatment
that he will maintain the use of NME for companies from member countries.
calculations, rather than pursue an Leaving the WTO is a simple process
alternative methodology5 that would -- Article XV of the agreement stipulates
allow the United States to honor its WTO that countries must notify WTO Director
General in writing and the withdrawal
5 alternative methodology: https://www.uschina.org/
sites/default/files/NME.pdf
