ANTIDUMPING
ACTIVITIES
Guided by: Prof. Madan lal sir
Presented by:
Rohan Jindal
DSE MBA(HRD)
SUMMARY OF THE CASE STUDY
Company: Global Steelworks
Background: Global Steelworks is a multinational
steel manufacturing company facing a decline in its
market share in the Indian steel industry due to
imported steel products from Country X being sold
at prices lower than production costs, suspected to
be a result of dumping. Anti-Dumping
Investigation:- Global Steelworks filed a complaint
with Indian authorities, alleging dumping practices
by manufacturers in Country X.- The Indian
government initiated an anti-dumping investigation
led by the Directorate General of Trade Remedies (
3
Investigation Process:
1. Initiation: The DGTR investigated whether imports from Country
X were being dumped and causing injury to the domestic industry.
2. Evidence: Both Global Steelworks and other domestic steel
producers provided evidence of dumping practices and injury to
the domestic industry.
3. Dumping Margin Calculation: The DGTR calculated the dumping
margin by comparing export prices of Country X's products with
their normal value in Country X.
4. Injury Assessment: The impact of dumped imports on the Indian
steel industry was evaluated, considering market share,
production, sales, employment, and profitability.
5. Causal Link: The investigation aimed to establish a causal link
between dumped imports and material injury to the domestic
industry.Outcome:- DGTR found evidence of dumping by
manufacturers in Country X.- Dumping margin was determined.- It
was concluded that dumped imports had caused material injury to
the Indian steel industry.
6. Anti-Dumping Duty:- Indian government imposed an anti-
dumping duty on imported steel products from Country X to offset
the unfair price advantage enjoyed by dumped imports
7. Impact:- The imposition of anti-dumping duty stabilized the
domestic steel market in India.- Global Steelworks and domestic
manufacturers regained lost market share, leading to positive
Q.1- What do we understand by the term antidumping activity?
Ans. Antidumping activity refers to measures taken by
government to counteract the practice of “dumping”. Dumping
occurs when a company exports a product to another country
at a price lower than its domestic market price, often to gain a
competitive advantage or eliminate competition in the target
market. And to counteract this tarrifs and taxes are imposed by
the country.
Q.2. What is the primary objective of antidumping measures,
and how do they aim to address unfair trade practices?
Ans. The primary objective of antidumping measures is to
counteract unfair trade practices, specifically dumping.
Dumping can harm domestic industries by creating an uneven
playing field.Antidumping measures aim to address this by
imposing additional tariffs and taxes on dumped products.
These measures provide protection to domestic industries and
help ensure fair competition. They are implemented after an
investigation to find out if dumping has occurred.
Q.3- Are there any notable differences in how
antidumping measures are
applied in different regions or countries?
Ans. Yes, there can be notable differences in how
antidumping measures are applied in different regions
or countries. The application of antidumping measures,
which are designed to protect domestic industries from
unfair competition due to low-priced imports, can vary
based on factors such as legal frameworks, procedural
requirements, and the level of scrutiny given to cases. 5
Different countries might have varying thresholds for
determining when dumping has occurred, and their
methods for calculating dumping margins and injury to
domestic industries can differ as well. Additionally, the
timeline and
transparency of the investigation process can vary
across jurisdictions. It's
important to consult specific regulations and
guidelines for accurate and up-to- date information on
how antidumping measures are applied in a particular
• Q4-In what ways do antidumping activities impact international
trade 6
• relationships between countries?
• Ans. Antidumping activities can impact international trade
relationships
• between countries in several ways. They can lead to tension and
disputes due
• to perceived infair trade practices. When one country impose
antidumping
• duties on another country’s exports, it can result in retaliation and
• countermeasures, escalating trade conflicts. Additionally, these
actions can
• erode trust and cooperation between trading partners, making it
harder to
• negotiate future trade agreements. Overall, antidumping activities
have the
• potential to strain diplomatic and economic relations between
countries
• Involved.
• Q5-What are the potential consequences of imposing antidumping
duties on
• imported goods for both domestic industries and consumers?
THANK YOU
