Non-market Economies in the Global Trading System

This book provides one of the most comprehensive and compelling analysis of Non-Market Economies (NMEs) and their treatment under the current world trading system. In particular, it examines the treatment of China as an NME in anti-dumping investigations, especially post-December 2016. Central to this analysis is Section 15 of China’s Protocol of Accession to the WTO, which is the focal point of the controversy between China and other major WTO Members. The book highlights multiple perspectives on the interpretation of Section 15 and the Second Ad Note to Article VI of the General Agreement on Tariffs and Trade (GATT), which form the legal basis for China’s special treatment in anti-dumping proceedings, and provides unique approaches on interpreting the above treaty texts. In addition, the book explores recourses to trade remedy instruments other than anti-dumping to identify and address state-driven market distortions in the case of NMEs. Authored by leading practitioners and scholars, the chapters offer a detailed commentary and rich insights into the diverse approaches and methods used by anti-dumping investigation agencies of leading users. This book serves as an all-inclusive resource for discerning all facets of this issue, magnitude of the consequences, and potential threats to the delicate trading system. It is of particular relevance to economies-in-transition and newly acceding countries to the WTO. This book generates special interest among legal practitioners, exporters, trading firms, think tanks, academicians, policy makers and the entire community engaged in international trade disputes with China.

“Non-market Economies in the Global Trading System by James J. Nedumpara (IIFT, New Delhi) and Weihuan Zhou, University of New South Wales (Sydney, Australia) is a topical and timely scholarly work. Nedumpara and Zhou have presented a rainbow of views – illuminative, extensive, and more importantly, balanced – of one of the complex issues facing the global trading system. The assortment of essays, written by academicians and scholars from all key jurisdictions, will serve as a one-stop shop for anyone who would like to examine and understand this subject. Engagingly written and lucid in its style and approach, this book is a remarkable contribution in the field of trade remedy law.”

-          Rita Teaotia, Commerce Secretary, Government of India, New Delhi

“The rulebook of the world trading system is in crisis. One of the many challenges is how to address “non-market economy” features in countries like China. This volume is unique in that it brings together both sides of the debate and goes beyond the usual rhetorics. It examines pressing but highly technical questions of trade remedy law ranging from external benchmarks and double remedies to particular market situations and China’s Accession Protocol. Useful lessons are drawn from experiences not only in China, but also Vietnam, Mexico and India. Answers to the challenges discussed in this book will determine the fate of the world trading system for decades to come.”

-          Joost Pauwelyn, Professor of International Law, Graduate Institute of International and Development Studies (IHEID), Genève, Switzerland; Murase Visiting Professor of Law at Georgetown Law Center, Washington D.C., USA 

“This is a very informative and instructive collection, although some of the views presented in the book will remain highly controversial and debatable. From this book, we see analysis from historical, economical, legal and technical perspectives which draw a comprehensive picture for this complex issue, i.e. the so-called non-market situation in China. Moreover, the approach to address this issue is more than welcome. Agree or not, this is a collection of opinions to start with, for both Chinese and overseas readers, practitioners and decision-makers.”

-          Guohua Yang, Professor, School of Law, Tsinghua University, Beijing, China

“There is little doubt that China’s rise creates new challenges for the international economic legal order. This impressive volume of essays edited by Nedumpara and Zhou offers a comprehensive treatment of Non-market economies (NMEs), especially in the context of WTO law and domestic anti-dumping practices.  Written by leading scholars and practitioners in this field, this book has tremendous appeal to anyone who is following the recent debate on China and its NME treatment.” 

-          Gary Horlick, Partner and International Trade Lawyer, Law Offices of Gary N. Horlick, Washington D.C.; Adjunct Professor of Law, Georgetown University Law Center, Washington D.C., USA

“How to define and treat a non-market economy (NME) is one of the longest-lasting and still most pressing challenges for the multilateral trading system, all the more so because of China's influence in the global political economy. This volume is an impressive collection of articles about this issue written by ambitious and distinguished scholars and practitioners across the world. They provide thoughtful analyses and insights about NMEs in the context of trade remedy rules and practices of the World Trade Organisation (WTO) and major WTO Members. This book, therefore, is a rich resource, not only for academics and practitioners, but also for government officials, judges, and policy specialists. Through it, they can compare, contrast, and critically appraise the ways in which the NME issue is, and should be, addressed.” 

-          Raj Bhala, Brenneisen Distinguished Professor, University of Kansas School of Law, Lawrence, USA; Senior Advisor, Dentons U.S. LLP; ‘On Point’ Columnist, Bloomberg Quint (India)

Dr. James J. Nedumpara is a Professor and Head of the Centre for International Trade and Investment Law (CTIL) established by the Government of India at the Indian Institute of Foreign Trade (IIFT). In this capacity he advises the government on various aspects relating to international trade and investment law. He is currently on leave from Jindal Global Law School where he joined as a founding faculty member. James has several years of experience in the field of international trade and economic law and has worked with leading law firms, corporate firms and also UNCTAD’s India programme before moving to academia.  He was also part of the Indian delegation that appeared in the recent proceedings on India – Agricultural Products (Avian Influenza dispute) before the WTO Appellate Body. James has also taught courses in international trade law as a visiting faculty at FGV Law School, São Paolo, Brazil, ITAM Mexico City, NLSIU Bangalore, NUJS Kolkata, and the CWS-WTI Joint Summer Academy. He has also completed visiting fellowships at several leading law schools. James received his PhD in Law from the National Law School of India University, Bangalore and holds Masters degrees in Law from the University of Cambridge, UK, the New York University School of Law, USA and the National University of Singapore. He received his Bachelor of Laws degree from Mahatma Gandhi University, India. He is the Co-Chair of the South Asia International Economic Law Network (SAIELN). 

Dr. Weihuan  Zhou obtained his LLM and PhD from the University of Sydney, and is a Senior Lecturer in the Faculty of Law, UNSW Sydney and a member of UNSW Law’s China International Business and Economic Law (CIBEL) Initiative. He publishes widely on the laws of the World Trade Organization (WTO), trade remedies, and free trade agreements, including a recently co-edited book on the “China – Australia Free Trade Agreement”.  Weihuan  has been invited to speak at internationally renowned conferences and Australian Government events, and to review book proposals and manuscripts for leading academic publishers. His work has been cited in research reports submitted to the European Parliament, EU Parliament Briefings, Australia’s Productivity Commission, and also by leading experts in the field of international economic law. Weihuan  is a former legal consultant at the Institute for Training and Technical Cooperation of the WTO, and has practised trade and commercial law with Corrs Chambers Westgarth. He has acted for governments and multinational companies in numerous major trade and investment matters.