Anti-dumping Measures in the WTO

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Anti-dumping Measures in the WTO Dumping Dumping refers to the action of exporting goods to a foreign country at a price that is higher than the normal price1. Dumping is a form of trade discrimination that results from unfair trading. Under the WTO agreement, dumping is defined as the practice of introducing a commodity to the commerce of another country at a price that is lower than the price that the commodity sells at, at the normal course of trade2. The prices of the commodity at the normal course of trade is what is referred to as the normal trade3. It is imperative for countries to guard against dumping given that it may lead to the destruction of vulnerable industries in its territories4. This is because it leads to competitive imbalance that makes it hard for locally produced goods to sell. Acting against dumping requires that countries initiate anti-dumping measures5. Before anti-dumping measures are implemented, there must been a thorough investigation of the dumping incidence to ascertain whether the incidence in question can be termed as dumping6. There must also be a determination of whether the said dumping indeed hurts the local industry in the country where the goods have been imported to, and lastly, there must be an establishment of a causal link between the dumped products and the injuries that are experienced in the local market7. Antidumping measures are a means of correcting unfair trade and it is one of the ways that members are permitted to go against the core values of the WTO, which emphasizes on trade liberalization8. It is important to have these remedies given that not having them can make the WTO vulnerable due to the surge of protectionist political pressures in member countries. It is therefore, important to have the remedies that may go against the ideals of trade liberalization9. How Determination of Injury to the domestic industry is done In order for anti-dumping measures to be undertaken, there must be an investigation to ascertain whether the incidence in question, indeed amounts to dumping and if it indeed causes an injury to the domestic market10. In order to determine whether there is dumping, the normal value of the products is determined and it is compared to the price at which the commodities are being exported at. Then the determination of injury can commence, which includes the establishment of what type of injury is being inflicted on the domestic market where the commodities have been exported to11. There are three types of injuries, which include material injury, threat to material injury, and material retardation12. In order to determine whether the dumped commodities are injurious to local industries, the investigative authorities must produce positive evidence and the issue must be evaluated objectively13. Positive evidence according the appellate body in the case US-Hot Rolled Steel refers refers to high quality evidence that can be verified. This evidence must also be affirmative and credible. The investigating bodes must also look at the relevant economic factors that may help ascertain whether the dumped products injure the domestic market as alleged14. Why the WTO law only condemn injurious dumping without prohibiting it The WTO law does not prohibit dumping. Instead, it condemns it. This is so because the WTO agreement is binding to the member states of the WTO and not the business entities that participate in trade among these countries15. Given that private firms, which are not bound by the provisions of the WTO law, are the ones that undertake dumping, it is why the WTO law only condemns the act16.

 

 

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