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On 10 October 2017, the provisional agreement resulting from inter-institutional negotiations on a proposal for amending the trade defense legislation of the European Union (the "Negotiated Proposal") was made public through the Committee on International Trade of the European Parliament. The Negotiated Proposal is based on the proposal published by the European Commission on 9 November 2016 in the context of the debate on whether China should be treated as a market economy as a result of Sections 15(a) and 15(d) of its Protocol of Accession to the WTO. This Legal Update describes the provisional agreement, including the rationale for proposing a new, “non-standard” dumping calculation methodology; a horizontal “non-standard” methodology to address costs and prices distortions; and reinforcement of the European Commission's investigation power in anti-subsidy proceedings.
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