Overview on Antidumping
                     Overview on Antidumping 
Anti-Dumping Meaning
• A corporation is said to be "dumping" a 
product if it exports it at a lower price than it 
would typically charge on its own domestic 
market. However, many governments 
implement anti-dumping measures to protect 
their indigenous businesses. 
• The WTO agreement does not make any 
decisions. Its focus is on how governments 
can or cannot respond to dumping — it Source: iPleaders
regulates anti-dumping measures, and it is 
commonly referred to as the "Anti-Dumping 
Agreement."
Anti-Dumping Rules
• All relevant economic factors that have 
an impact on the state of the industry in 
question must be evaluated as part of 
the study. 
• If the inquiry reveals that dumping is 
occurring and that domestic industry is 
being harmed, the exporting company 
can agree to raise its price to an 
agreed-upon level in order to avoid 
paying anti-dumping duties. Source: Business Standard
Anti-Dumping Rules
• The procedures for initiating anti-
dumping complaints, conducting 
investigations, and ensuring that all 
interested parties are given the 
opportunity to present evidence are all 
spelled out in detail. 
• Anti-dumping restrictions must be lifted 
five years after they were imposed 
unless an examination reveals that 
doing so would cause harm. Source: CA Knowledge
Anti-Dumping Agreement
• According to the agreement, member 
nations must immediately and 
thoroughly inform the Committee on 
Anti-Dumping Practices of all 
preliminary and final anti-dumping 
actions. They are also required to 
submit a report on all investigations 
twice a year. When disagreements 
emerge, members are urged to seek 
advice from one another. They can also 
use the World Trade Organization's Source: iLawFirm
(WTO) dispute resolution system.
Subsidies
• This agreement accomplishes two 
goals: it limits the use of subsidies and it 
governs the activities countries can take 
to mitigate their consequences. It states 
that a country can seek the withdrawal 
of the subsidy or the removal of its 
negative consequences through the 
WTO's dispute settlement system. 
• Alternatively, the country can conduct 
its own inquiry and impose additional 
duties (known as "countervailing tariff") Source: iLawFirm
on subsidised imports that harm 
domestic manufacturers.
Countervailing Measures
• A definition of subsidy is included in the 
agreement. 
• It also introduces the concept of a 
"particular" subsidy, which is a subsidy 
that is exclusively available to a single 
firm, industry, group of enterprises, or 
group of industries in the country (or 
state, etc) that provides it. Only certain 
subsidies are subject to the agreement's 
restrictions. Subsidies might be 
domestic or export-oriented.
Source: tomorrowmakers
Countervailing Measures
• Subsidies are divided into two types in 
the agreement: banned and actionable. 
Non-actionable subsidies were 
previously included as a third category. 
This category lasted five years, from 
December 31, 1999 to December 31, 
1999, and was not renewed. Except 
when subsidies are exempt under the 
Agriculture Agreement's "peace clause," 
which is set to expire at the end of 
2003, the agreement applies to both 
agricultural and industrial goods.
Source: Business Standard
Prohibited Subsidies
• Subsidies that force users to reach specific export 
targets or to employ domestic rather than imported 
goods. They are prohibited because they are 
meant to distort international trade and are thus 
likely to harm the trade of other countries. They can 
be contested in the World Trade Organization's 
(WTO) dispute settlement mechanism, where they 
are dealt with in a more expedited manner. 
• If the dispute resolution mechanism determines 
that the subsidy is illegal, it must be removed 
immediately. Otherwise, the protesting country has 
the option of retaliating. If subsidised goods imports 
affect domestic producers, a countervailing duty 
can be applied.
Source: Business Standard
Actionable Subsidies
• In this case, the complaining country must 
demonstrate that the subsidy is harmful to its 
interests. The subsidy is permissible in all 
other cases. They can create three forms of 
damage, according to the agreement. 
Subsidies from one country can harm an 
importing country's domestic industry. 
• When they compete in third markets with 
competing exporters from another country, 
they can hurt each other. Domestic subsidies 
in one country can affect exporters trying to 
compete in the domestic market of the 
subsidising country.
Source: Economic Times
Safeguards
• When enforced, a safeguard measure should 
only be used to the amount necessary to 
prevent or cure serious injury, as well as to 
assist the affected industry in adapting. 
• Quantitative restrictions (quotas) should 
typically not reduce import volumes below 
the annual average for the last three 
representative years for which statistics are 
available, unless there is clear reason that a 
different level is required to prevent or rectify 
substantial injury. Source: iStock
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