Topic > The WTO and anti-dumping - 947

1. IntroductionIf a company exports a product at a lower price than it normally charges in its home market, it is said to be "dumping" the product. Is this unfair competition? Opinions differ, but many governments take anti-dumping measures to protect their domestic industries. The WTO Agreement makes no judgment. Its focus is on how governments may or may not respond to dumping: it regulates anti-dumping actions and is often called an “anti-dumping agreement”. Among WTO members, AD is the most popular contingent protective measure among others, namely offsetting. duty (CVD) and safeguard (SG). (Chad P. Bown 2011) From 1995 to 2000, the number of AD cases initiated represented 89.1% of the total cases sanctioned by all WTO members. The share of CVD remained at 7.1%. In this period the least used measure was the GP, with a share of only 3.8%. (Aggarwal 2004 p.1043) Governments tend to support the use of AD as a trade remedy measure, as AD is more attractive as a safety valve tool of “political support”. It has the following advantages: First, the sense of justice has made it easy to convince the public that the "unfair trade practice" of foreign competitors is the real cause of its implementation. It could help avoid blaming domestic public enterprises for lack of competitiveness. Secondly, although SG and AD both aim to provide protection to domestic industry, compared to SG, AD has many advantages. 1. AD is subject to the least stringent conditions. That is, the implementation threshold of AD is much lower than that of SG. GP is implemented under two conditions: first, if there is an increase in imports; secondly, the domes... in the middle of the paper...rity. Submitting false information or failing to submit documents within the deadline can also be punished with a fine. When the number of suppliers, products or transactions is too large, the Ministry may select a sample for the survey using statistical sampling methods based on the information available at the time of selection or by choosing suppliers or products with the largest import volumes. When Mexico started to apply for AD against China, in the first years Chinese producers did not respond to the SE request within the established deadline. China's passive reaction spurred such actions by Mexican claimants in the early years. SE therefore uses "available data" provided exclusively by domestic producers to calculate the highest dumping margin; that's why some anti-dumping duties amount to more than 1200%.