Dumping is, in general, a situation of international price discrimination, where: The price of a product when sold in the importing country is less than the price of that product in the market of the exporting country, Thus causing material injury to a domestic industry producing the like product
ANTIDUMPING AGREEMENT WHAT IS DUMPING? Dumping is, in general, a situation of international price discrimination, where: The price of a product when sold in the importing country is less than the price of that product in the market of the exporting country, Thus causing material injury to a domestic industry producing the like product WHAT IS ANTI-DUMPING AGREEMENT? AD AGREEMENT IN SHORT The Anti-Dumping Agreement is an agreement under the umbrella of the World Trade Organization (WTO) The AD Agreement governs the investigation, determination, and application, of antidumping measures by Members of the WTO The AD Agreement sets: Substantive requirements that must be fulfilled in order to impose any measure Basic principle Determination of dumping Determination of injury BASIC PRINCIPLE THAT A MEMBER MAY NOT IMPOSE AN ANTI-DUMPING MEASURE UNLESS IT DETERMINES THERE ARE: (A) DUMPED IMPORTS (B) MATERIAL INJURY TO A DOMESTIC INDUSTRY (C) CAUSAL LINK BETWEEN THE TWO (1) DETERMINATION OF DUMPING DUMPING IS CALCULATED: On the basis of a “FAIR COMPARISON” between normal value (the price of the imported product in the “ordinary course of trade” in the country of export) export price (the price of the product in the country of import) (2) DETERMINATION OF INJURY BASIC REQUIREMENTS: There must be an OBJECTIVE examination, based on: Evidence of the volume and price effects of dumped imports Consequent impact of dumped imports on the domestic industry (2) DETERMINATION OF INJURY BASIC REQUIREMENTS: The causal link between dumped imports and injury must be clearly established (e.g: any injury caused by factors other than dumped imports must not be attributed to the dumped imports) The AD Agreement sets: Substantive requirements that must be fulfilled in order to impose any measure Detailed procedural requirements regarding the conduct of anti-dumping investigations DETAILED PROCEDURAL REQUIREMENTS OVERVIEW Objective: Ensure transparency of proceedings, a full opportunity for parties to defend their interests, and adequate explanations by investigating authorities of their determinations Anti-dumping measures ● Sustainative Requirements comparison between the export price of a product and its normal value in the exporting country => explains how a “fair comparison” is made between the two ● Investigations + provide evidence of dumping, injury and a causal link between the two + provide the full text of the written application to all known exporters => Application be rejected if the government authorities conclude that there is insufficient evidence of either dumping or injury ● Price Undertaking Satisfactory voluntary undertakings from exporters Calculation Anti - dumping duty = Normal Value - Export Value normal value of the good: domestic market value of a particular product Dumping Margin calculation = (Adjusted Normal Price Value - Adjusted Export Price) /Adjusted Eport Price x100 Export price: Price be determined on a reasonable basis by investigating authority Imposition of anti-dumping duties ● Applied to all imports of the subject merchandise made on or after the date on which there is a preliminary determination of dumping, injury and causality ● The Agreement states that an anti-dumping duty shall remain in force as long as necessary to counteract dumping that is causing injury Thanks for your listening! CREDITS: This presentation template was created by Slidesgo, and includes icons by Flaticon, and infographics & images by Freepik Please keep this slide for attribution ANTI-DUMPING AGREEMENT NGUYEN KIEU TRANG - K60 KTDN Definition of “dumping” A product is to be considered as being dumped, i.e introduced into the commerce of another country at less than its normal value, if the export price of the product exported from one country to another is less than the comparable price, in the ordinary course of trade, for the like product when destined for consumption in the exporting country - Anti-Dumping Agreement (ADA) (1994) ANTI-DUMPING DUTIES GATT’s Article allows anti-dumping duties to be imposed on goods that are deemed to be dumped and causing injury to producers of competing products in the importing country Conditions for anti-dumping measures 01 Dumping is occurring 02 The domestic industry producing the like product in the importing country is suffering material injury 03 There is a causal link between the two Catfish - US anti-dumping investigation On June 28, 2002, the US Department of Commerce (DOC) initiated an anti-dumping investigation for catfish exported from Vietnam, specifically pangasius and catfish ● ● ● Initiation date: 28/06/2002 Plaintiff: Catfish Farmers of America (CFA) and U.S catfish processors America's Catch Inc Final conclusion: Impose anti-dumping duty starting from August 12, 2003, with the final tax rate from 36.84 to 63.88% and valid for years ANTI-DUMPING Presented by: Nguyễn Minh Phương What is "dumping"? If a company exports a product at a price lower than the price it normally charges on its own home market, it is said to be “dumping” the product Why "anti-dumping"? Dumping causes injury to producers of competing products in the importing country How "anti-dumping"? Anti-dumping Agreement The World Trade Organization (WTO) plays a critical role in the regulation of anti-dumping measures The WTO Agreement does not regulate the actions of companies engaged in “dumping” Its focus is on how governments can or cannot react to dumping CONCLUSION With an aim to preventing unfair competition in international trade, Anti-dumping Agreement was born to guide the authorities of importing countries' reaction against dumping activities Thank you for listening! DG Forsha