Anti-dumping: A growing problem in international trade
- How does the procedure work?
- The procedure.
- AD legislation.
- WTO AD agreement of 1994.
- EU AD legislation.
- Why anti-dumping is called into question.
- Anti-dumping has nothing to do with dumping.
- The proliferation problem calls into question the nature of anti-dumping.
- The new users of anti-dumping.
- Toward a reform of AD rules?
- The rounds.
- The success of GATT/WTO negotiations in lowering MFN tariffs.
- Towards a reform of Anti-Dumping?
Since the signing of the General Agreement on Tariffs and Trade (GATT) in 1947, free trade has been widely adopted and has enabled countries to enjoy prosperity. It was aimed to foster free trade by reducing tariffs and by settling an international mechanism to solve international trade disputes. This agreement was replaced in 1995 by the World Trade Organization (WTO), which was aimed to implement an opened and multilateral trading system. Nevertheless, some companies have succeeded to convince their governments to protect themselves from overseas competition. Anti-dumping (AD) was thus adopted to cut down on harsh competition. It is an official policy introduced to heal the problem of dumping. Under the coverage of contending for allegedly unfair trading practices, governments have implemented AD laws. They were designated to thwart foreign companies that were accused of practicing dumping. " A product is to be considered as being dumped, i.e. introduced into the commerce of another country at less than its normal value, if the export price of the product exported from one country to another is less than the comparable price, in the ordinary course of trade, for the like product when destined for consumption in the exporting country."
[...] The success of GATT/WTO negotiations in lowering MFN tariffs In their paper, Politicisation of EC Antidumping Policy: Member States, Their Votes, and the European Commission,? Simon Evenett and Edwin Vermulst focus on the role that EC member states play in deciding whether to impose definitive duties on imports that have been found to be dumped and that are deemed to have injured a European industry. They have carried out extensive searches of media outlets and compiled a database that sheds light on the pattern of EC member-state voting on antidumping measures since 1991. [...]
[...] What is more, it is a very paradoxical situation: originally, AD was to foster free trade and is, in fact, a strong kind of protectionism. Over the last 30 years, AD has radically changed from its initial goals. Alan V. Deardorff and Robert M. Stern share Prusa's point of view. They have put into evidence in " A Centennial of Anti-dumping Legislation and implementation: Introduction and overview" that AD is used to protect domestic companies from "alleged dumping practices of foreign exporters". [...]
[...] The reform of WTO AD rules has become a hotly debated topic in the new Doha round of multilateral trade negotiations. Leading developing countries such as Brazil, Korea, Mexico and others have threatened to hold all other negotiating issues hostage to changes in this protectionist vestige from the past. They have been joined by several developed countries including Norway, Switzerland, Israel and Japan (no doubt, as a result of the developing countries' long history as the chief targets of AD actions by the United States and European countries). [...]