Findings on Dumping and Anti-dumping: (October 5, 2010, Karobar Daily India put Anti-dumping price on its

imported DVDs from Thailand, Malaysia and Vietnam«) What is Dumping? Dumping is one of the kinds of pricing policy in international trade and is defined as the act of a manufacturer in one country exporting a product to another country at a price which is either below the price it charges in its home market or is below its costs of production. A standard technical definition of dumping is the act of charging a lower price for a good in a foreign market than one charge for the same good in a domestic market. This is often referred to as selling at less than "fair value". Why Dumping is done? Dumping is the commercial practice of selling goods in foreign markets at a price below their normal cost or even below their marginal cost so as to capture foreign markets. Many countries follow dumping practices. It is harmful to less developed countries where the cost of production is high. Since these practices are naturally considered to be unfair competition by manufacturers in the country in which the goods are being dumped, the government of the foreign country will be asked to impose "anti-dumping" duties. Under the World Trade Organization (WTO) Agreement, dumping is condemned (but is not prohibited) if it causes or threatens to cause material injury to a domestic industry in the importing country. [1] What is anti-dumping then? Anti-dumping are special duties additional to the normal ones, designed to match the difference between the price in the home country and the price abroad. If the domestic industry is able to establish that it is being injured by the dumping, then antidumping duties are imposed on goods imported from the dumpers' country at a percentage rate calculated to counteract the dumping margin. Antidumping duties offset injurious dumping. The use of anti dumping measure as an instrument of fair competition is permitted by the WTO. [2] How it is calculated? While permitted by the WTO, General Agreement on Tariffs and Trade (GATT) (Article VI) allows countries the option of taking action against dumping. The Anti-Dumping Agreement clarifies and expands Article VI, and the two operate together. They allow countries to act in a way that would normally break the GATT principles of binding a tariff and not discriminating

e. or a calculation based on the combination of the exporter¶s production costs. If the investigation shows dumping is taking place and domestic industry is being hurt. Calculating the extent of dumping on a product is not enough. And the agreement also specifies how a fair comparison can be made between the export price and what would be a normal price. "Dumping. pp. de the exporting company can undertake to raise its price to an agreed level in order to avoid antidumping import duty. a detailed investigation has to be conducted according to specified rules first. UK: Cambridge University Press. The main one is based on the price in the exporter¶s domestic market. The agreement narrows down the range of possible options. When this cannot be used. The investigation must evaluate all relevant economic factors that have a bearing on the state of the industry in question. other expenses and normal profit margins. bringing a product onto the market of another country at a price less than the normal value of that product is condemned but not prohibited in WTO 3. ISBN 978-0-511-12392-4. unless a review shows that ending the measure would lead to injury. [3] References: 1. Peter (2005)." 2. two alternatives are available²the price charged by the exporter in another country. Professor of International For depth study on anti-dumping please read: Antidumping protection: Good for bad firms but bad for good firms by Hylke Vandenbussche . http://en. Therefore. Anti-dumping measures must expire five years after the date of imposition. or insignificantly small (defined as less than 2% of the export price of the product).between trading partners²typically anti-dumping action means charging extra import duty on the particular product from the particular exporting country in order to bring its price closer to the ³normal value´ or to remove the injury to domestic industry in the importing country. i.voxeu. Anti-dumping measures can only be applied if the dumping is hurting the industry in the importing country. There are many different ways of calculating whether a particular product is being dumped heavily or only lightly. 42. Université Catholique de Louvain-la-Neuve : http://www. The Law and Policy of the World Trade Organization. http://www. Other conditions are also set. Anti-dumping investigations are to end immediately in cases where the authorities determine that the margin of dumping is. Cambridge. It provides three methods to calculate a product¶s ³normal value´.php?q=node/1726 .wikipedia. Van den Bossche.

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