Anti-dumping: a common threat to international trade

There is a disturbing rise in the number of anti-dumping cases being issued. The original idea behind the law established by GATT (General Agreement on Tariffs and Trade) in 1947 was to restrict cases of unfair trade, where one country distorted the market to sell cheaper goods to another.

by Global Business Review

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

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