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Distortions in Competition: Dumping and Anti-Dumping Measures

In: Improving International Competition Order

Author

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  • Christian A. Conrad

Abstract

After having lowered the general import duties in the various GATT rounds, however, anti-dumping measures became one of the most important import restrictions in global trade. Anti-dumping duties are on average 10–20 times higher than the existing import duties and can be as high as 100 times the import duties.1 Dumping is defined in international economics according to two criteria: the sale of goods on an importing market at a price lower than that charged on the domestic market, or the sale on a foreign market at a price lower than the cost of production. Article VI of the GATT prohibits dumping in the international rules of fair trade if it causes or threatens to cause material injury to an existing industrial branch or greatly hinders the development of a new branch (GATT, art. IV). Anti-dumping measures should create and maintain a state of fair competition, taking on the role of a competition organization, which is still lacking on an international level.

Suggested Citation

  • Christian A. Conrad, 2005. "Distortions in Competition: Dumping and Anti-Dumping Measures," Palgrave Macmillan Books, in: Improving International Competition Order, chapter 2, pages 33-56, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-00596-9_3
    DOI: 10.1057/9780230005969_3
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