World Trade Organization Anti Dumping Agreement

World Trade Organization Anti Dumping Agreement

Since a dumping survey requires a comparison between the export price of a product and its normal value in the exporting country, the AD agreement establishes rules for calculating the export price and the normal value. He then explains how a “fair comparison” is made between the two. The government conducting an anti-dumping investigation uses this fair comparison to determine the “dumping margin.” The 1994 GATT contains a number of fundamental principles that apply to trade among WTO members, including the principle of the most favoured nation. It also requires that imported goods not be subject to internal taxes or other modifications beyond imported goods for domestic goods, and that imported goods not be treated less favourably than domestic products in other respects, as well as rules on quantitative restrictions, royalties and customs procedures related to import and assessment of duties. WTO members also approved a timetable for related tariffs. On the other hand, Article VI of the 1994 GATT expressly authorizes the establishment of a specific anti-dumping duty on imports from a given source exceeding the fixed rates, in cases where dumping harms or harms a domestic industry or significantly delays the creation of a domestic industry. The agreement on the implementation of Article VI of the 1994 GATT, commonly known as the Anti-Dumping Agreement, provides for the further development of the basic principles set out in Article VI itself, in order to regulate the investigation, fixation and application of anti-dumping duties. Article 1 of the AD Agreement establishes the fundamental principle that a member cannot impose an anti-dumping measure unless he finds, as a result of an investigation conducted pursuant to the provisions of the AD agreement, that there are dumping imports, significant harm to a domestic industry and a causal link between dumped imports and prejudice. In the particular situation of economies where the government has a total or essentially complete commercial monopoly and where all domestic prices are set by the State, the 1994 GATT and the agreement recognize that a close comparison with domestic market prices may not be appropriate. As a result, importing countries exerted considerable discretion in calculating the normal value of exported products from non-market economies. Legal definitions are more precise, but overall, the WTO agreement allows governments to combat dumping in the event of actual (substantial) harm to competing domestic industry. To do so, the government must be able to demonstrate dumping, calculate the extent of dumping (how much the export price is below the exporters` real estate prices) and demonstrate that dumping causes harm or threatens to do so.

8.1 Procedures may be suspended or suspended (19) in the absence of interim measures or anti-dumping duties if each exporter has agreed to satisfactory voluntary commitments to change its prices or stop exports to the region at dumping prices, so that the authorities are confident that the adverse effects of dumping will be eliminated.