Since the signing of the General Agreement on Tariffs and Trade (GATT) in 1947, free trade has been widely adopted and has enabled countries to enjoy prosperity. It was aimed to foster free trade by reducing tariffs and by settling an international mechanism to solve international trade disputes. This agreement was replaced in 1995 by the World Trade Organization (WTO), which was aimed to implement an opened and multilateral trading system. Nevertheless, some companies have succeeded to convince their governments to protect themselves from overseas competition. Anti-dumping (AD) was thus adopted to cut down on harsh competition. It is an official policy introduced to heal the problem of dumping. Under the coverage of contending for allegedly unfair trading practices, governments have implemented AD laws. They were designated to thwart foreign companies that were accused of practicing dumping. " A product is to be considered as being dumped, i.e. introduced into the commerce of another country at less than its normal value, if the export price of the product exported from one country to another is less than the comparable price, in the ordinary course of trade, for the like product when destined for consumption in the exporting country."
[...] The success of GATT/WTO negotiations in lowering MFN tariffs In their paper, Politicisation of EC Antidumping Policy: Member States, Their Votes, and the European Commission,” Simon Evenett and Edwin Vermulst focus on the role that EC member states play in deciding whether to impose definitive duties on imports that have been found to be dumped and that are deemed to have injured a European industry. They have carried out extensive searches of media outlets and compiled a database that sheds light on the pattern of EC member-state voting on antidumping measures since 1991. [...]
[...] What is more, it is a very paradoxical situation: originally, AD was to foster free trade and is, in fact, a strong kind of protectionism. Over the last 30 years, AD has radically changed from its initial goals. Alan V. Deardorff and Robert M. Stern share Prusa's point of view. They have put into evidence in " A Centennial of Anti-dumping Legislation and implementation: Introduction and overview" that AD is used to protect domestic companies from "alleged dumping practices of foreign exporters". [...]
[...] AD Legislation In most countries, which choose to implement anti-dumping as a limit to international trade, the rise of anti-dumping policy had often gone hand in hand with a fundamental policy shift towards trade liberalisation. The part of the paper will take into consideration the important steps that AD legislation has covered since a century. First, an overview of AD legislation during a century will be presented. Then, an explanation of WTO AD agreement of 1994 will be given and finally, the EU AD legislation will be put forward. [...]
[...] We have weighted the view displayed by this author in his paper "Anti-dumping: A growing Problem in International Trade" against or with the reasoning of author authors. In that respect, the paper is divided into two distinct sections. The first section investigates the legislation and the general procedures of anti-dumping. The second explains why anti-dumping is nowadays called into question. The third section contemplates the prospects for a reform of anti-dumping rules. HOW DOES THE PROCEDURE WORK I. The Procedure Countries are allowed to take actions against dumping and make anti-dumping provisions, what is stated in the GATT (Article VI [i.e. [...]
[...] A good example is the case of the United States: "The number of US anti-dumping investigations conducted in the late 1930s and the late 1950s and early 1960s is surprisingly large and comparable to the post-1980s levels of activity" (Irwin; 2005). That has changed today. The research shows that among the countries, which have started to use AD lately, investigations were made mainly because of political reasons. "The theoretical analysis reaches the conclusion that there are very few instances where AD is supported by sound economic motives" (Zanardi; 2004). [...]
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