TRADE REMEDY

MEASURES
 ANTI-DUMPING MEASURE

Trade remedy measure to protect the

domestic industries against unfair trade
practice caused by dumping.
 WHAT IS DUMPING?

• Export of a product at a price less than its

normal value.

• Form of price discrimination or differentiation

between two national markets.
 LEGISLATION

• CMTA Section 711, adopting the provisions of RA 8752 (signed on 12 August 1999 and took
effect on 04 September 1999), otherwise known as the “Anti-Dumping Act of 1999”.

• The Implementation Rules and Regulations (IRR) or Joint Administrative Order No. 01, s.
2000 was signed on 03 July 2000 and took effect on 10 July 2000.

• GATT Article VI and WTO Agreement on the Implementation of Article VI of GATT 1994.
 ELEMENTS OF DUMPING

1.Like product;

2.Price difference/Dumping Margin;

3.Material Injury; and

4.Causality
 1. LIKE PRODUCT

DEFINITION
• Product which is identical or alike in all respect to the product under consideration,
OR

• In the absence of such a product, another product which, although not alike in all
respect, has characteristics closely resembling those of the product under
consideration.
(Sec. 2(n) of IRR)
 DOMESTIC INDUSTRY DEFINITION

• Refers to the domestic producers of like products as a whole or to those

such producers whose collective output of the products constitutes a
major proportion of the total domestic production of those products in
the industry concerned.

(Sec. 3 (d) 2&3 of IRR)

 2. PRICE DIFFERENCE/DUMPING MARGIN

DEFINITION
• Amount by which the normal value (the price prevailing in the exporting country) exceeds the
exports price (selling price to an importer).
• Dumping Margin:
DM = NV – EP
or if expressed as a %
DM = NV – EP
EP
 2. PRICE DIFFERENCE/DUMPING MARGIN

WHAT IS A NORMAL VALUE?

• Foreign producer’s domestic selling price.

• Comparable price at the date of sale of the like product in the ordinary course of trade when destined for
consumption in the country of export or origin.

(Sec. 2(s) of IRR)

2. PRICE DIFFERENCE/DUMPING MARGIN
ALTERNATIVE NORMAL VALUE
Sec. 11(c) of IRR
Domestic prices in the
COP + SAGE + PROFIT
exporting country

No hierarchy
Export price to a third Constructed value in the
between
country exporting country
these two

Best Information Available

 2. PRICE DIFFERENCE/DUMPING MARGIN

WHAT IS AN EXPORT PRICE?

• Price paid or the selling price to an importer;

• Ex-factory price at the point of sale for export; OR

• Free-on-board (F.O.B) price at the point of shipment.

(Sec. 2(I) of IRR)

 2. PRICE DIFFERENCE/DUMPING MARGIN

ALTERNATIVE EXPORT PRICE?

(Sec. 11 (k) of IRR)
• constructed or deductive price, i.e., domestic selling price of imported articles
less than cost incurred after exports, e.g., customs duty, sales tax, selling,
administrative expenses and profit); or

• reasonable price.
 2. PRICE DIFFERENCE/DUMPING MARGIN

DETERMINATION OF DUMPING MARGIN

• Individual margin of dumping for each known exporter.

(Sec. 11(m) of IRR)

 3. MATERIAL INJURY

DEFINITION

• Refers to material injury to a domestic industry (“current or present injury”), threat of material
injury (“future injury”), or material retardation of the establishment of a domestic industry.

• Injury test must be based on positive evidence and objective examination of both:
 Volume of the dumped imports and the effect of dumped imports on prices in the domestic market for like
product; and
 Consequent impact of these dumped imports on the domestic producers of such products.

(Sec. 12(a) 1 to 3 of IRR)

 4. CAUSALITY

DEFINITION

• Causal relationship between the dumped imports and the injury to the
domestic industry.

• Refers to “overall assessment” that the material injury suffered by the

domestic industry is the direct result of the importation of the dumped imports.
SUBSIDIES AND COUNTERVAILING
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SUBSIDIES AND COUNTERVAILING
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TRADE REMEDY MEASURE
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SAFEGUARD MEASURE

Trade remedy to protect

the domestic industry
against import surge.
SAFEGUARD MEASURE
SAFEGUARD MEASURE
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TRADE REMEDY MEASURES
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TRADE REMEDY MEASURES