23. Consider the following statements regarding Market Economy Status
1. It is given by WTO to a country where key pricing of goods and services are guided solely by the market.
2. It is opposite to a centrally planned economy, where government decisions drive country’s economic activity.
3. China’s economy has been granted this status in 2016.
Which of the above statement(s) is/are correct?
23. Consider the following statements regarding Market Economy Status
1. It is given by WTO to a country where key pricing of goods and services are guided solely by the market.
2. It is opposite to a centrally planned economy, where government decisions drive country’s economic activity.
3. China’s economy has been granted this status in 2016.
Which of the above statement(s) is/are correct?
The correct option is A Only 1 and 2
Under WTO norms, once a country gets MES status, exports from it are to be accepted at the production costs and selling price as the benchmark. Prior to this status, country is considered as a Non Market Economy (NME). Under the WTO norms, the importing countries are allowed to use alternative methodologies for the determination of normal values for the exports from NME country. It often leads to imposition of higher anti-dumping duties by importing countries to protect its domestic market.
China’s economy has been granted this status in December 2016 as per the china’s accession agreement with WTO, 2001
Under WTO norms, once a country gets MES status, exports from it are to be accepted at the production costs and selling price as the benchmark. Prior to this status, country is considered as a Non Market Economy (NME). Under the WTO norms, the importing countries are allowed to use alternative methodologies for the determination of normal values for the exports from NME country. It often leads to imposition of higher anti-dumping duties by importing countries to protect its domestic market.
China’s economy has been granted this status in December 2016 as per the china’s accession agreement with WTO, 2001
