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Unit Six ;Teaching Objectives;Teaching Emphases ;Content ; However, fourteen of the bloc’s 25 member states voted against it afterwards, which is believed by European importers and retailers to potentially hurt consumers and be eventually harmful to EU’s economy. “Anti-dumping measures are extremely sensitive and member states have different views on the subject,” commented by one spokesman of the EU Trade Commission.
Hereby a series of questions may come to your mind — What is dumping? How is it determined? What factors should be taken into consideration? And once it is regarded as a dumping action, what anti-dumping procedures will be conducted? How about the time schedule for anti-dumping proceedings and whether a dumping duty will be levied? What effects may anti-dumping policy have on the countries? We may find our way to most of them in Article VI of GATT and the Anti-Dumping Agreement.
; Dumping is, in general, a situation of international price discrimination, where the price of a product when sold in the importing country (known as the “export price”) is less than the price of that product in the market of the exporting country (known as the “normal value”). Dumping can harm the domestic industry by reducing its sales volume and market shares, as well as its sales prices. This in turn can result in decline in profitability, job losses and, in the worst case, in the domestic industry going out of business.
Often, dumping is mistaken and simplified to mean cheap or low priced imports. In essence, it implies low priced imports only in the relative sense (relative to the normal value), and not in absolute sense. There are many different ways of calculating whether a particular product is being dumped. ; In the simplest of cases, one identifies dumping simply by comparing prices in two markets. However, the situation is rarely, if ever, that simple, and in most cases it is necessary to undertake a series of complex anal
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