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Saturday, May 12, 2012

What is the WTO Agreement on Anti-Dumping Measures? - Law - International Law

Dumping refers to a practice in international trade when a company exports a product at a lower price than the price it normally charges in its own home market - i.e. selling the goods at an unfairly low price which has the potential to damage the domestic market that cant compete with the low price. The company is said to be dumping the product.

The Anti-Dumping Agreement of the World Trade Organisation (WTO) and Article 6 of the General Agreement on Tariffs and Trade (GATT) allow governments to act against dumping where there is genuine risk of injury to the competing domestic industry. Anti-dumping measures taken by governments usually include charging extra import duties on those goods from the exporting country. Essentially, this is a form of protectionism and discrimination between trading partners, which is something the WTO usually does not advocate, and thus the Anti-Dumping Agreement allows countries to act in a way that would normally constitute a breach of the principles of GATT.

To be able to come under the provisions of the Anti-Dumping Agreement and Article 6 of GATT, the countrys government must be able to show that dumping is taking place, calculate the extent of dumping, and show that the dumping is causing injury to the domestic market or threatening to do so. The provisions set out detailed rules on the method of determining that a product is dumped, the criteria to be taken into account in determining whether the dumping is causing injury to a domestic industry, and the procedures to be followed in initiating and conducting anti-dumping investigations. It also contains provisions on the implementation and duration of anti-dumping measures. It also has dispute settlement mechanisms.

If you are a business conducting international trade, the anti-dumping rules of international trade law may be relevant to you. An international trade lawyer can advise you on the rules and how they affect your business. If you have a dispute regarding dumping or anti-dumping measures, an international trade lawyer can provide you with legal advice and negotiate on your behalf.

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