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China-Autos: Haven’t We Danced This Dance Before?

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  • Andrew D. Mitchell
  • Thomas J. Prusa

Abstract

Just as it had in several recent similar disputes, the Panel in China – Autos found several of the challenged issues WTO inconsistent. We believe virtually all of the deficiencies noted by the Panel could be easily addressed with minor changes to MOFCOM practices. The real significance of this dispute lies in what it tell us about the larger trade policy dance between the US and China. On the one hand, with the series of related WTO disputes the US has demonstrated that China must comply with WTO rules. The more vexing challenge, however, is the apparent tit-for-tat motivation for this and other recent Chinese trade policies, and on this point this dispute does little to change the calculus. The prospective nature of WTO relief makes it almost impossible for the WTO to discourage the type of opportunistic protectionist actions exemplified by this case.

Suggested Citation

  • Andrew D. Mitchell & Thomas J. Prusa, 2015. "China-Autos: Haven’t We Danced This Dance Before?," RSCAS Working Papers 2015/64, European University Institute.
    • Handle: RePEc:rsc:rsceui:2015/64
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    References listed on IDEAS

    as
    1. Prusa, Thomas J. & Vermulst, Edwin, 2014. "China – Countervailing and Anti-dumping Duties on Grain Oriented Flat-rolled Electrical Steel from the United States: exporting US AD/CVD methodologies through WTO dispute settlement?," World Trade Review, Cambridge University Press, vol. 13(2), pages 229-266, April.
    2. Prusa, Thomas J. & Vermulst, Edwin, 2015. "China – Anti-Dumping and Countervailing Duty Measures on Broiler Products from the United States: How the chickens came home to roost," World Trade Review, Cambridge University Press, vol. 14(2), pages 287-335, April.
    3. Moore, Michael O. & Wu, Mark, 2015. "Antidumping and Strategic Industrial Policy: Tit-for-Tat Trade Remedies and the China–X-Ray Equipment Dispute," World Trade Review, Cambridge University Press, vol. 14(2), pages 239-286, April.
    4. Chad Bown & Kara Reynolds, 2015. "Trade flows and trade disputes," The Review of International Organizations, Springer, vol. 10(2), pages 145-177, June.
    5. Bown, Chad P. & Wauters, Jasper, 2008. "United States – Anti-Dumping Measures on Oil Country Tubular Goods (OCTG) from Mexico: a legal-economic assessment of sunset reviews," World Trade Review, Cambridge University Press, vol. 7(1), pages 269-298, January.
    6. Prusa, Thomas J. & Vermulst, Edwin, 2011. "United States – Continued Existence and Application of Zeroing Methodology: the end of Zeroing?," World Trade Review, Cambridge University Press, vol. 10(1), pages 45-61, January.
    7. Huerta-Goldman, Jorge A., 2013. "How Easy Is an Easy Case for a Complainant? Comment on US–Zeroing (Korea) DS402," World Trade Review, Cambridge University Press, vol. 12(2), pages 427-431, April.
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    Cited by:

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    2. Bown, Chad, 2019. "The 2018 US-China Trade Conflict After 40 Years of Special Protection," CEPR Discussion Papers 13695, C.E.P.R. Discussion Papers.
    3. Kara Reynolds & Tatiana Yanguas, 2018. "China – Cellulose Pulp: China’s Quest to Satisfy WTO Panels and the Appellate Body," RSCAS Working Papers 2018/59, European University Institute.

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    Keywords

    MOFCOM; essential facts; price effects; tit-for-tat protection;
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