The AntiDumping Agreement of the World Trade Organization (WTO), commonly known as the AD Agreement, governs the application of antidumping measures by WTO member countries. A product is considered to be “dumped” if it is exported to another country at a price below the normal price of a like product in the exporting country. The agreement has no expiration date.
International Trade Policy ANTI-DUMPING AGREEMENT T R A N P H U O N G T H A N H International Trade Policy WHAT IS ANTI-DUMPING AGREEMENT? The Anti-Dumping Agreement of the World Trade Organization (WTO), commonly known as the AD Agreement, governs the application of anti-dumping measures by WTO member countries A product is considered to be “dumped” if it is exported to another country at a price below the normal price of a like product in the exporting country The agreement has no expiration date International Trade Policy WHY DUMPING? 01 To Find a Place in the Foreign Market Due to perfect competition in the foreign market, companies lower the price of commodity in comparison to other competitors so that the demand for their goods increase 02 To Sell Surplus Commodity When there is excessive production of a monopolist’s commodity and a company is not able to sell in the domestic market, it wants to sell the surplus at a very low price in the foreign market 03 Expansion of Industry The cost of production of a commodity is reduced and by selling more quantity of this commodity at a lower price in the foreign & domestic market, companies can earn larger profit 04 New Trade Relations The company sells its commodity at a low price in the foreign market, thereby establishing new market relations with those countries Arowwai Industries ANTI-DUMPING DUTY 01 02 An anti-dumping duty is a protectionist tariff that a domestic government imposes on foreign imports that it believes are priced below fair market value The country’s imposition of an anti-dumping duty is determined by the dumping margin- difference between the export price and domestic selling price in the exporting country ANTI-DUMPING MEASURES 01 02 03 Tariff Duty Import Quota Import Embargo To stop dumping, the importing country imposes tariff on the dumped commodity consequently, the price of the importing commodity increases and the fear of dumping ends But it is necessary that the rate of duty on imports should be equal to the difference between the domestic price of the commodity and the price of the dumped commodity Only a commodity of a specific volume or value is allowed to be imported into the country For this purpose, it includes the imposition of a duty along with fixing quota, and providing a limited amount of foreign exchange to the importers The imports of certain or all types of goods from the dumping country are banned International Trade Policy THANK YOU FOR LISTENING! I N T E R N A T I O N A L T R A D E P O L I C Y Anti-dumping agreement Đỗ Tất Đạt - K60 -CLCKT Anti dumping agreement The World Trade Organization (WTO) is the parent organization of the Anti-Dumping Agreement (ADA) The ADA lays out guidelines and procedures to stop dumping, which happens when: A business hurts the domestic industries of importing nations by exporting a product at a cheaper price than it typically charges in its local market Measures against dumping Tariff Duty: High rates of import tariff on dumping Import Quota: Restrict the Volume of import Import embargo: Ban the import of a particular product or all goods from a country Voluntary Export Restraint: Exporting countries realize the negative effects and voluntarily comes for Bilateral agreements Impacts of anti-dumping law ADVANTAGeS Prevent Monopolies Protect Vulnerable Industries Preserve Employment Opportunities DISADVANTAGES Against Free Trade Concepts Trade Barrier -> Lower Economic growth Distort the market INTRODUCTION TO WTO ANTIDUMPING AGREEMENT HOÀNG HẢI KHANH - 2112150081 - TMAE301.2 DUMPING REFERS TO THE PRACTICE OF EXPORTING GOODS TO A FOREIGN COUNTRY AT LOWER PRICES THAN THE EXPORTING PRICE OF COUNTRY’ S THE SAME DOMESTIC GOODS MARKET IN THE AS A RESULT, AFFORDABLE OR CHEAPER EXPORTED GOODS INVADE THE MARKET IN THE IMPORTING COUNTRY This low pricing act affects the producers in the importing market UNDERSTANDING "DUMPING" & considered an unfair practice in many countries Nations are embracing anti-dumping to establish protective measures 01 WTO ANTI-DUMPING AGREEMENT The WTO agreement focuses on how governments can or cannot react to dumping — it disciplines anti-dumping actions, and it is often called the “Anti-Dumping Agreement” calculate the extent of dumping ANTI-DUMPING AGREEMENT show that the dumping is causing injury or threatening to so 02 The legal definitions are more precise, but broadly speaking the WTO agreement allows governments to act against dumping where there is genuine (“material”) injury to the competing domestic industry In order to that, the government has to: show that dumping is taking place SUBSTANTIVE RULES DETERMINATION OF DUMPING Calculated on the basis of a “fair comparison” between normal value and export price DETERMINATION OF INJURY MATERIAL INJURY: material injury itself, threat of material injury, or material retardation of the establishment of a domestic industry BASIC REQUIREMENT: objective examination based on volume and price effects of dumped imports & consequent impact of dumped imports on the domestic industry Known factors other than dumped imports (may be causing injury) must be examined Cumulative evaluation of the effects of dumped imports from more than one country may be undertaken DEFINITION OF INDUSTRY Domestic industry Regional domestic industry Domestic producers may be excluded from consideration as part of the domestic industry if they are “related” to exporters or importers of the dumped product 03 THANK YOU! Anti-dumping Agreement Article VI of the 1994 GATT agreement Agreement on Anti-dumping Article VI of GATT allows countries to take action against dumping The Agreement clarifies and expands Article VI, and the two operate together Substantive rules Procedural rules Determine the injury or threat of injury, and link between Injury and dumped imports Definition of Dumping Product is exported to the importing country market (export price) at a price lower than its selling price in the domestic market When a product of one country is introduced into the commerce of another country at less than the normal value of the product Dumping calculation Amount of Dumping = normal value - export price Example: Amount of Dumping = 85 – 80 = Dumping Margin = (dumping/export price) X 100 Example: Dumping Margin = (5 ÷ 80) X 100 = 6.25% more than de minimis (2%) Dumping Duty (applied in customs) = (amount of dumping/export price at *CIF level)= ÷ 90 =5.55% *CIF: The goods cost including insurance and ocean freight up to the buyers port Anti-dumping Measures Provisional Price Final Measures Undertaking Measures Provisional duty, or, preferably, a Satisfactory voluntary Anti-Dumping Duties which shall security undertakings from any exporter not exceed the margin of dumping