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Essay / Anti-dumping: the history of dumping - 2282
3. Theoretical themes3.1. History of DumpingAccording to EU policies, a product is considered dumped if its export price to the EU is lower than a comparable price for the like product in the course of commercial transactions normal or in the country of origin of the exporter (Andersen, 2009). . The definition includes concepts that take into consideration a comparable price, the similar product, the normal course of commercial operations and the country of export (Barcelo, 1972). These conditions are similar to those provided for by WTO law. However, under WTO law, the definition of dumping includes the condition “intended for consumption”. This condition is not inherent in the EU definition of dumping (Andersen, 2009). Typically, dumping involves exporting goods to another destination at prices significantly lower than those charged in the country of origin. The WTO assumes that dumping should be avoided if it threatens to cause injury to an established industry in a market or if it is capable of delaying the creation of a viable domestic industry (Paul, 2008). One of the first contemporary definitions of dumping is: “price determination and unfair competition between national markets” (Futrell, 2001, p.254). This definition is found in the anti-dumping law provisions of the Emergency Tariff Act of 1921 in the United States (United States Tariff Commission, 2014). The legislative goal of the law was to prevent the sale of foreign goods in U.S. markets at prices lower than the prices of the same goods in the U.S. market (Futrell, 2001). Current WTO law on dumping and anti-dumping measures is stipulated in Article VI of the General Agreement on Tariffs and Trade (GATT) and the WTO Implementation Agreement ...... middle of paper ......trade (%); Weighted average tariffs applied by the country (%). The methodology replicates the strategy adopted by Aggarwal (2004) and applies it to state cases -US and EU. The empirical model is as follows:〖AD〗_t=α+β_1 〖Imports〗_(t-1)+β_2 〖Industry〗_(t-1)+β_3 〖Net exports〗_(t-1)+β_4 〖 Tariffs〗_(t-1)+ε(AD stands for Aggregate Demand)The regression is estimated in Eviews (2014). The results make it possible to test the following hypotheses, deduced from the literature review: H1: Anti-dumping regulations tend to increase during periods of recession and economic slowdown; H2: An increase in the growth rate of imports stimulates the implementation of anti-dumping measures; H3: The accumulation of trade surplus leads to the reduction of anti-dumping procedures; H4: Countries with a stronger protectionist stance, indicated by higher tariffs, tend to be more active in anti-dumping regulation..