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The Dumping Issue

Author

Listed:
  • Bibek Debroy

    (Rajiv Gandhi Institute for Contemporary Studies, New Delhi)

  • Nilanjan Banik

    (Rajiv Gandhi Institute for Contemporary Studies, New Delhi)

Abstract

The anti-dumping agreement is a major agreement in the rules segment of the Uruguay Round package, although some versions of the anti-dumping code precede the Uruguay Round. Dumping is defined as exporting a product at lower than its 'normal value', interpreted as exporting below the sales price in the domestic market, below the sales price in a third market, or below cost of production plus mark-ups. An act of dumping can lead to imposition of anti-dumping duties provided that dumping leads to injury to domestic industry and the causal link is established. Although the Uruguay Round anti-dumping agreement is an improvement on earlier versions, there continue to be problems with interpretation, and anti-dumping duties legitimize protectionism with attendant welfare losses. While the anti-dumping agreement can be improved, this paper argues that if competition policy issues (including predatory intent) are properly addressed, the anti-dumping agreement can be scrapped.

Suggested Citation

  • Bibek Debroy & Nilanjan Banik, 2000. "The Dumping Issue," Global Business Review, International Management Institute, vol. 1(1), pages 75-89, February.
    • Handle: RePEc:sae:globus:v:1:y:2000:i:1:p:75-89
    DOI: 10.1177/097215090000100105
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    Cited by:

    1. Pradeep Kumar Mehta, 2001. "Post-Seattle Environment: Developing Countries at the Crossroads," Global Business Review, International Management Institute, vol. 2(1), pages 121-134, February.

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