Assessment of the Probable Economic Effects on NAFTA of Granting Market Economy Status to China

A report released today concludes that treating China as a market economy in antidumping investigations would “severely damage the NAFTA steel industries and NAFTA economies.” The study, comprised of three economic analyses, was conducted by leading economists from Capital Trade Incorporated in Washington, DC; the Centre for Spatial Economics in Ontario, Canada; and IMCO in Mexico City, Mexico.

The report summary concludes, “China is a reforming economy, not a market economy, and now accounts for nearly half of global steel output. [China’s] share is likely to continue growing if it is treated as a market economy for purposes of antidumping laws. Allowing China the benefit of this treatment, without requiring a completion of economic reforms, would remove a powerful incentive for completion of the reform program.”

Read the full report here.