Antidumping issues involving India

Abstract

Dumping is defined as the sale of good at a lower price in the international market compared to the domestic market. De minims dumping • Margin of Dumping - Less than 2% of export price - Exporter prices • Volume of dumped imports - Less than 3% of total imports - Accumulation not more than - 7% - Country specific Predatory pricing is a strategy by which an exporter attempts to drive competitors from export market and obtain monopoly power by cutting the export price below the price at which he sell in his domestic market. Dumping is categorized into 5 categories: 1) Monopolistic predatory pricing 2) Strategic behavior falling short of monopolistic predatory pricing 3) Price discrimination aimed at market entry 4) Cyclical price cutting 5) Behavior of state trading enterprises not based on commercial considerations Anti dumping provisions is part of the WTO agreements. These agreements try to make the laws uniform throughout the world and define the conditions under which anti dumping actions can be initiated. The international trade statistics shows that the anti dumping [AD] actions have been growing over the decades. With the elimination of tariffs and quotas under the General Agreement on Trade and Tariffs/World Trade Organization (GATT/WTO) regime, anti-dumping (AD) has emerged as a key instrument of protection. In recent times there has been a sharp increase in anti-dumping initiations by many of the WTO member countries.