WTO commitments of Vietnam on surrogate normal value in anti-dumping Investigations

Abstract

The Protocol of Accession of Vietnam into the WTO states that the commitment on non-market economy status (NME) in anti-dumping and anti-subsidy investigations will expire on 31 December 2018. However, other WTO members continue to list Vietnam among non-market economies and calculate normal value based on the surrogate country data. This paper analyzes the principles of determining normal value in WTO laws and the effects of the NME commitment expiration on calculation of surrogate normal value for Vietnam. It reveals that the expiration of this provision would not automatically drive Vietnam into a market economy and other WTO members have sufficient legal grounds under the General Agreement on Tariffs and Trade 1994 and the Anti-dumping Agreement, particularly the concept of ordinary course of trade and particular market situation, to continue the surrogate normal value methodology even after 31st December, 2018.