By – Group 21. Aditya2. Debangshu3. Kiran Kumar4. Manikandan5. Sandra

“Dumping is a situation of international price

discrimination, where the price of a product when

sold to the importing country is less than the price of

the same product when sold in the market of the

exporting country.”

Normal Value: The comparable price at which the

goods under complaint are sold in the domestic

market of the exporting country.

Export price: The price at which it is exported to the

importing country.

Dumping Margin: The margin of dumping is the

difference between the Normal value and the export

price of the goods under complaint. It is generally

expressed as a percentage of the export price.

Exporters Price

Compare Exporter Price to Normal Value

Normal Value $110.00

Exporter Price $90.00

Difference Attributable to Dumping

$20.00

Difference Attributable to Dumping/exporter price

DumpingMargin = $20.00 / $90.00=22.22%

Normal Value

Producers in one country are trying to staycompetitive with producers in another country.

Producers in one country are trying to eliminate theproducers in another country and gain a larger shareof the world market

Producers are trying to get rid of excess stuff thatthey can't sell in their own country,

Producers can make more profit by dividing salesinto domestic and foreign markets, then chargingeach market whatever price the buyers are willing topay.

Affects the operation of the domestic manufacturers

Job losses and unemployment in the long run

Affects trade relations between countries

39%

13%11%

9%

7%

4%

17%

METAL CHEMICAL PLASTIC TEXTILES M&E A&F OTHER

Source: WTO Secretariat, Rules Division Anti-dumping Database

In the 19th century European Sugar Industries

appealed to their respective governments for

protection against sugar being dumped at unfairly

low prices.

In 1902, there was a formal agreement on anti-

dumping. Canada adopted the first anti-dumping law

in 1904 followed by the European countries and then

the US in 1916.

Formed the basis for the original GATT article

(Article VI of GATT) on anti-dumping in 1947.

Subsequently, codes on anti dumping were developedduring the Kennedy Round (1962-67) and Tokyo Round(1973-79).

However, these were not binding on all GATT (GeneralAgreement on Tariffs & Trade) members; they wereopen to signature by those countries that wished to doso.

But the Uruguay Round, (1986-94) anti-dumpingagreement is an agreement binding on all GATT orWTO members.

It is a measure to rectify the situation arising out of thedumping of goods and its trade distortive effect.

Re-establish fair trade.

The use of anti dumping measure as an instrument offair competition s permitted by the WTO.

It provides relief to the domestic industry against theinjury caused by dumping.

Sufficient evidence to the effect that

There is dumping

There is injury to the domestic industry and

There is a causal link between the dumping and the

injury, that is to say, that the dumped imports have

caused the alleged injury.

Should not be less than six months and not more

than eighteen months.

The most desirable period of investigation is a

financial year. (period should be as representative a

possible)

For the purposes of injury analysis, the domestic

industry has to furnish the relevant data for the past

three years.

No anti dumping duty shall be recommended without

a finding of this causal relationship. That is to say,

Dumping should lead to Injury

The causal link is to be established generally in

terms of the following effects of dumped imports on

domestic industry: -

volume effect

price effect

The volume effect of dumping relates to the market

share of the domestic industry.

for price effect, significant price under cutting by the

dumped imports as compared with the price of the

like product in the importer country.

Anti-dumping measures taken by WTO members have increased from 129 in 2000 to 208 in 2013; 83%.

New users: Argentina, India, Brazil, South Africa.

Traditional users: Canada, U.S., European Union, Australia, Mexico.

Most affected industries: Metal, Chemical, plastic, textiles, machinery and equipment, agriculture and food.

Source: WTO Secretariat, Rules Division Anti-dumping Database

Prevents Monopolies

Protects Vulnerable Industries

Allows Firms to Compete

Preserves Jobs

1

• Actual or potential decline in sales

• Loss of profits

• Decrease in market share

2

• Reduction in capacity utilization

• Reduction in wages

• Cut down in manpower

3• Inability to raise capital

• Loss in contracts

• Shutdown of plant

272 cases against other nations.

Out of which 149 are against China

Cases are filed under various products and profiles

as follows:

Chemicals & Petrochemicals

Pharmaceuticals

Textiles/Fibers/Yarns

Steel & Other Metals

Consumer Goods

Other Products

Allura Red Color[(FD&C)Red No.40] case---USA Vs India Its used in soft drinks, baked foods, pet foods and

pharmaceutical drugs. Case was filed by US colors company Sensient

Technologies on the grounds of import commodityallura red coloring being sold at less than fair value inUSA

Decision by 4 Commissioners in favor of India sayingthat “ there is not a reasonable indication that a USIndustry is is materially injured or threatened withmaterial injury by reason of imports of allura redcoloring from India that are allegedly subsidised andbeing sold in the US at less than the fair value.