A Critical Evaluation of Dumping IN INTERNATIONAL TRADE

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134 occurred across the world from the beginning International Trade Commission, Ministry of of 1990 to the end of June, 1996 (Ministry of International Trade and Industry, Japan, 1998). Dumping is an unfair trade practice by exporters because dumping aims at forcing competitors out of their markets. Besides, it allows the dumped country to take protective International Trade and Industry, Japan, and the World Trade Organization. E. Definition “Jacob Viner (1923), the first scholar to pull together precious writing on the subject, notes measures; the dumped country imposes exorbitant tariffs or countervailing duties on the imports from dumping countries to protect a sixteenth century English writer who charged foreigners with selling paper at a loss to smother the infant paper industry in England” its industry from such dumping. (Finger, 1996: 13–14). Does dumping tend to increase along with the development of the world economy? Does According to the General Agreement on Tariffs and Trade (GATT), dumping is defined free trade stand on the balance of power between unfair trade and countervailing measures? Is it possible to eliminate dumping as the price of a product exported from one country to another in less than the comparable price for the like product when destined for practices from international trade? A thorough examination on these issues and in-depth study of International Agreements on dumping consumption in the exporting country (Hindley, 1996). T. E. Gregory, an English economist, points hopefully will reveal the mechanism that underlies the unfair trade and protectionism. This paper should contribute to foreseeing out that the term “dumping” is used at one time or another to cover all the four following practices: (1) Sale at prices below foreign what and how international trading practices should be, in order to sustain continuous, stable growth of the world economy. market prices, (2) Sale at prices with which foreign competitors cannot cope, (3) Sale at prices abroad which are lower that current D. Sources of Data The Duane G. Meyer Library of Southwest home prices, (4) Sale at prices unprofitable to the sellers (Viner, 1996, 3). In summary, “dumping” implies price- Missouri State University was used to acquire various books, journals, governments’ documents, etc. As to the books and journals, discrimination between national markets. Therefore, selling products at a lower price in foreign markets than the price of the like product those written by theorists, researchers, and exgovernments’ officials specializing in antidumping policy, were purposefully selected. Governments’ and other public documents were collected by way of Internet and microfilm. They were of the U.S. in a domestic market constitutes dumping. F. Plan of Presentation Part II describes why companies dump and what impact antidumping measures have on both the home and foreign countries. This
A Critical Evaluation of Dumping IN INTERNATIONAL TRADE 135 chapter also gives an insight into the issue of raise prices afterward. But why do they resort whether dumping can be stopped. Part III discusses “dumping” and “antidumping” from a global perspective. First, it shows how each to dumping? GREG MASTEL classified the motivations of dumping into four categories in American Trade Laws after the Uruguay country deals with antidumping measures. Secondly, it examines how the World Trade Organization (GATT) copes with these issues. Round: (1) over-capacity dumping, (2) government-support dumping, (3) tactical dumping (discriminatory pricing), and (4) Thirdly, an assumption is given as to whether or not the world will be free from “dumping” and “antidumping”. Part IV presents the predatory dumping (p. 77–84). Over-capacity dumping occurs when a company continues producing and selling at a conclusions of the study focused mainly on (1) whether dumping will be stopped, (2) what each country should do, and (3) what role the price lower than the average cost of production, trying to recoup at least fixed costs. Government-supported dumping is perceived World Trade Organization should play. II. DUMPING AND ANTIDUMPING Why do companies dump? Can dumping when the government supports a particular industry by providing subsidies. Supported by the government’s subsidies, the firm in the industry can sell their products at a price below the production costs. Agricultural products, for example, are often dumped in this way. practices be stopped? Why and how are antidumping measures taken? What impact do they have on the dumping country and on Tactical dumping is the practice of selling the same product in different markets at different prices. It works best if a company’s the dumped country? Dumping and antidumping practices are reciprocal actions that occur between dumping and dumped home market is closed to imports. With a closed home market, the company can charge high prices at home and generate high profits, countries. But they have one thing in common: both lead to protectionism, which is an impediment to the development of the global which offset sales at a loss in foreign markets. Predatory dumping aims at eliminating the competition with the objective of gaining economy. This chapter deals with the above issues in detail and therefore forms a major part of this paper. exclusive control of the market. It is an extreme form of discriminatory pricing in that it pursues monopolizing a market. This A. Dumping Practices Dumping is one of the commercial tactics dumping practice is most likely to cause a destructive injury to the dumped country. Whether it is called “dumping” or employed by companies trying to expand their market into foreign countries or force competitors out of foreign markets in order to “discriminatory pricing”, low-cost pricing is a marketing strategy aimed at market entry or eliminating competitors’ operations by using
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A Critical Evaluation of Dumping IN INTERNATIONAL TRADE

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