Dumping

The commercial practice of sale of a product below his price and even worse below his cost of production, with the immediate aim to withdraw progressively competitors and sooner or later the market to interfere in. " This practice is prohibited as " the General Agreement on Rates and Trade "

HYPOTHETICAL EXAMPLE OF ECUADOR

• FEW MONTHS IN THE YEAR THE ONION IS EXPENSIVE IN ECUADOR

• THE ONION OF PERU IS CHEAPER THAN THE PRODUCED ONE IN OUR COUNTRY

• IMPORTED THE ONION IS MUCH CHEAPER THAN PRODUCED IN ECUADOR

THIS ONE IS OUR DUTY?

THE DOLLAR LIKE NATIONAL CURRENCY IS MORE ATTRACTIVE FOR OUR NEIGHBORING COUNTRIES PERU AND COLOMBIA TO DO BUSINESS IN DOLLARS

FOR THE TYPE OF CHANGE MONETARY.

THE ONION IN THE MARKET OF PERU ALSO WAS CHEAP BECAUSE YOUR MINOR COSTS OF PRODUCTION

IN PERU THERE WAS A OVERPRODUCTION OF ONION

CAN SAY THIS IS UNFAIR COMPETITION

What we must do to counterreduce this problem?

FIRST THE MAGAP MUST BE PENDING SUCH SUDDEN CHANGES IN PRICES AND IMMEDIATELY PROHIBIT THE ENTRY OF PRODUCTS IN THIS CASE THE ONION

BETTER CONTROL THE SMUGGLING IN THE BORDER.

IMPOSE MORE PRODUCTS IMPORT TAXES TO THREAT OF DUMPING

CONCLUSIONS

While this trend exists on the commercial market, and the governments do not have clear policies to control it, the problem for the farmers was continuing

It needs that the governmental authorities and the entities of government are prepared well, to prevent this type of problems from happening often, and to know clearly the action plans to execute to reduce his impact in the economy of a country

THANK YOU FOR YOUR ATTENTION