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ANTI-DUMPING: A NEW SOLUTION. Presented by: Catalina Guáqueta Farida Kerouani Adrian Senyszyn. Anti-Dumping. Explanation Proposal Broader Implications Futures Challenges Bibliography. Article VI of GATT 1994 :

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anti dumping a new solution


Presented by:

Catalina GuáquetaFarida KerouaniAdrian Senyszyn

anti dumping
  • Explanation
  • Proposal
  • Broader Implications
  • Futures Challenges
  • Bibliography
what is anti dumping
Article VI of GATT 1994:

A product is said to be dumped when its export price is less than its normal value, that is less than the sale of a like product in the domestic market in the exporting country.

What is Anti-Dumping?
anti dumping litigation
Anti-Dumping Litigation
  • World Trade Organization
    • Countries are responsible for bringing a case to the WTO Dispute Resolution System.
  • U.S. Court of International Trade
    • Commerce Department determines if anti-dumping occurred.
    • International Trade Commission (ITC) determines if material injury occurs.
anti dumping globally
Anti-Dumping Globally
  • Anti-dumping measures taken by WTO members have increased from 129 in 1994 to 236 in 2000; 83%.
  • Dec. 2000 - 1119 anti-dumping measures in place globally.
  • 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.
most affected sectors
Most Affected Sectors

Source: WTO Secretariat, Rules Division Anti-dumping Database

statistics january june 2002
Statistics (January - June 2002)
  • 30% less investigations for this period in comparison with last year at the same period of time.
  • 37 cases initiated by developed countries and 63 by developing countries.
  • So far we have the similar trend for steel and chemical sectors.
  • Out of 22 AD initiations in the US 16 involved metal products.
u s as complainant
U.S. As Complainant
  • 1 of 59 complaints made by the U.S. were related to anti-dumping.
  • Case: Mexico – Anti-Dumping Duties on High Fructose Corn Syrup
    • U.S. prevailed in litigation.
u s as respondent
U.S. As Respondent
  • 7 of 69 cases that have been brought against the U.S. are related to anti-dumping.
    • Case lost: Anti-dumping – Steel plate from India.
    • 6 of 8 cases in consultations are Anti-dumping related.
impact of anti dumping laws

Prevents Monopolies

Protects Vulnerable Industries

Allows Firms Time to Compete

Preserves Jobs


Against Free Trade Concept

Trade Barrier – Lowers Economic Growth

Distorts the Market

Protects Firms from Competition

Hurts Consumers

Impact of Anti-Dumping Laws
  • Reform Anti-dumping procedure in the U.S.
  • Negotiate minor changes to the WTO Anti-dumping Agreement.
reform the u s anti dumping law
Reform the U.S. Anti-Dumping Law
  • Department of Commerce must review the concept of anti-dumping.
    • Review the methodology of anti-dumping.
  • ITC must define material injury and be a more partial judge.
    • Material injury is broad and subject to interpretation.
  • Congress must ensure that the ITC is cognizant of WTO negotiated agreements.
changes to wto agreement
Changes to WTO Agreement
  • Penalize WTO members for abuse of anti-dumping law.
    • Amend article 9, Imposition and Collection of Anti-Dumping Duties
  • Negotiate the industry specific, incremental decrease of anti-dumping laws globally.
    • Revise article 11, Duration and Review of Anti-Dumping and Price Undertakings.
  • Tie in to a compromise on IPR agreements, or other U.S. interests.
In Favor





Regional Agreements (NAFTA)


US currently protected industries

US Labor Unions (AFL/CIO)

Countries who want to protect their domestic market

benefits for the u s
Benefits for the U.S.
  • Reduce the number of cases brought against the U.S.
    • U.S. wins as a Complainant, and loses as a Respondent.
  • Better defense in anti-dumping cases.
    • U.S. law closer to WTO agreements.
  • Hold other nations accountable.
broader implications
Broader Implications
  • Increase competition, which will increase productivity and efficiency.
  • Greater economic prosperity for all WTO members.
  • Lower prices for consumers.
  • Higher national income.
future challenges
Future Challenges
  • Negotiating a change to WTO anti-dumping agreements.
  • Altering the Dispute Settlement System to award damages.
  • Convincing the American public that reform is critical for continuing U.S. success.
  •  1 Harvard International Review. National Sovereignty in the World Trading System. Winter 2001.
  • The Economist.Our Law, Your Law. June 27, 2002
  • Association for Consumer Research. Global Trade Policy: Agenda for Change. September/October
  • 2001.
  • 4 President George W. Bush. Remarks by The President at Signing of the Trade Act of 2002. August 6,
  • 2002.
  • Chemical Week. Trade Barriers Start to Fall Following WTO Entry. September 4, 2002.
  • 6 Director General Supachai Panitchpakdi. Trade and Sustainable Development: The Doha Development
  • Agenda. Johannesburg, South Africa. September 3, 2002.
  • The Financial Times. Playground Rules that Promote Protectionism. September 3, 2002.
  • The Economist. The Dumping Dilemma. May 30, 2002.
  • WTO Secretariat, Rules Division Anti-dumping Database
  • Dump our Anti-Dumping Law, Michael S. Knoll, Foreign Policy Briefing No. 11 July 25, 1991
  • Anti-dumping Law is discriminatory, Brink Lindsey, CTPS Articles
  • WTO: Trading to the Future
  • 14.