China as a Market Economy After 2016: A Brazilian Perspective

Abstract

The purpose of this paper is to analyze the recognition of China as a market economy in the context of the Brazilian investigations into trade remedies after 2016 when a clause of China’s protocol of accession to the World Trade Organization (WTO) expired. Although the interpretation of the Brazilian authority is now clear (a case-by-case evaluation of the sectors under analysis), some aspects of these applications should be further discussed. Among those aspects are the (in)adequate procedural time to address whether China is a market economy, the consequences of the absence of participation by Chinese exporters in these investigations, and the legal uncertainty as to the information that should be considered in the investigation. Finally, the research will provide an empirical analysis on the impact that a counterfactual and unrestricted recognition of China as a market economy might have on current anti-dumping duties currently enforced by Brazil.