Developing a model of total quality management for primary school education

Abstract

Regulation of foreign trade has remained one of the most important policy issues faced by national governments. While the trade policy regime world over has been witnessing progressive liberalisation under multilateral arrangements, demand for trade remedy regulations for protecting domestic producers from unfair competition, has been increasing. Antidumping, as one of these trade remedy instruments or contingent protection measures, has occupied the center stage, as the instrument of first choice, due to inherent protectionist elements in the GATT code and national regulations. Increasing use of this instrument by both traditional and non-traditional user has been a matter of concern because of the trade distorting effects of such actions. This paper examines the evolution and spread of the instrument of antidumping from economic, legal and political economy angles. It analyses the GATT Code of Antidumping and the national regulation of the three most frequent users of this instrument, i.e., the US, the EU and India. The paper observes that while it is essential to protect the domestic industry from unfair trade practices, it is also important to determine how 'unfair' these unfair practices are. Any trade remedy law should separate and distinguish between market distorting trade practices and monopolization attempts from normal price behaviour and competitive advantage of the exporting firms. The paper concludes that while political economy factors might have helped the evolution of this instrument, it is the lack of economic tests for dumping and injury determination, and in-built asymmetries and discretionary elements in the GATT AD codes that are responsible for the growing use of this instrument world over. The paper recommends major changes in the GATT code of antidumping to bring in economic rationality and public interest tests into the code, in order to prevent competition restricting practices under the garb of trade remedy actions.