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  • Essay / The WTO and anti-dumping - 947

    1. IntroductionIf a company exports a product at a price lower than the price it normally charges in its own domestic market, it is said to be "dumping" the product. Is this unfair competition? Opinions differ, but many governments are taking action against dumping to defend their domestic industries. The WTO agreement is non-judgmental. It focuses on how governments can or cannot respond to dumping — it disciplines anti-dumping measures and is often called the "Anti-Dumping Agreement." Among WTO members, DA is the most popular contingent protection measure among others, namely compensatory measures. duty (CVD) and safeguard (SG). (Chad P. Bown 2011) From 1995 to 2000, the number of anti-dumping cases initiated represents 89.1% of the total cases sanctioned by all WTO members. The share of cardiovascular diseases remained as low as 7.1%. SG was the least frequently used measure with a share of only 3.8% over this period. (Aggarwal 2004 p.1043) Governments tend to support the use of anti-dumping duty as a trade remedy because the anti-dumping duty is more attractive as a safety valve tool of “policy support”. It has the following advantages: First, the sense of justice has made it easy to convince the public that "unfair trade practices" of foreign competitors are the real cause of its implementation. This can help prevent domestic SOEs from being blamed for their lack of competitiveness. Second, although both SG and AD aim to protect domestic industry, compared with SG, AD has many advantages. 1. AD is subject to the least stringent conditions. That is to say, the thresholds for implementing AD are much lower than those for SG. GS is implemented under two conditions: first, if there is a sharp increase in imports; on the other hand, the domes...... middle of paper ......rities. Presentation of false information or failure to provide documents within the deadline may also be punishable by a fine. When the number of suppliers, products or transactions is too large, the ministry may select a sample for the survey using statistical sampling methods based on the information available at the time of selection or by choosing the suppliers or most imported products. When Mexico began filing an anti-dumping duty against China, Chinese producers did not respond to the SE request on time in the first few years. China's passive response spurred such actions by Mexican plaintiffs in the early years. Therefore, SE uses "facts available" provided exclusively by domestic producers to calculate the highest dumping margin; this is why some anti-dumping duties amount to more than 1200%.