Since then, tariffs were reduced during a series of GATT and WTO trade rounds, bringing down country barriers to trade. Facing the cold winds of global free trade, many countries have started using anti-dumping laws to protect their domestic industries and even to retaliate against countries that have been using anti-dumping laws against them.
During the past 10 years, India, the EU and the US have resorted to anti-dumping law the maximum number of times.
The trend is dangerous as using anti-dumping measures to punish other nations could result in a new ‘cold war'. There needs to be a revamping of the system based on the principles of economic rationalism, anti-discretionary practices and transparency.
Anti-dumping: a common threat to international trade, Aryashree Debapriya & Tapan Kumar Panda, Global Business Review, Vol 7 No 2, July-December 2006