Lecture 5

Question 1

Anti dumping laws

Answer 1

• most widely used trade remedy
• article VI authorizes member countries to introduce anti dumping regimes to address cases where the products of one country are introduced into the commerce of another at less than the normal value, which threatens the established industry

Question 2

WTO provisions on anti dumping

Answer 2

Article 17.6, WTO panel in its assessment of facts determines whether the domestic authorities establishment of the facts was proper and objective
- even though the Panel might have reached a different conclusion, the evaluation shall not be overturned

Question 3

Special import measures act (Canada)

Answer 3

includes a provision authorizing the CITT to hold public interest hearings to determine whether imposing anti dumping would be contrary to the public interest, despite the fact that they meet the conditions

Question 4

Dumping determination

Answer 4

estimating the normal value of the goods by referencing to country of origin prices, constructed costs, or surrogate third country export prices in the case of transition economies

Question 5

Injury determination

Answer 5

evaluation of the impact of dumping on the domestic producers of like products.

Question 6

What does article 3.4 of the Uruguay Round Antidumping Agreement indicate?

Answer 6

That material injury can include a variety of factors (actual and potential decline in sales, profits, outputs, etc.)

Question 7

What does article 3.5 require proceedings to demonstrate?

Answer 7

That the dumped imports are through the effects of dumping, causing injury within the meaning of this Agreement

Question 8

When is a product to be considered less than normal value?

Answer 8

if the price that the product is exported at is

1. less than the comparable price for the like product when destined for consumption in the exporting country
2. in the absence of domestic product, is less than either
   - the highest comparable price for the like product for export by any third country in the course of ordinary trade
   - the cost of production of the product in the country of origin plus a reason able addition for selling cost and profit.

Question 9

Article 2.1 Uruguay

Answer 9

defined products as being dumped if the export is less than the comparable price of a like product

Question 10

Article 2.4 Uruguay

Answer 10

comparison between the export price and the normal value should be fair, this precludes comparing isolated low price export transactions with weighted average domestic prices to establish dumping

Question 11

Article 3 Uruguay

Answer 11

determination of injury shall be based on positive evidence and involve an objective examination of both:

• the volume of the dumped imports and the effect of the dumped imports on the prices in the domestic market for like products
• the consequent impact of these imports on domestic producers of such product.

Question 12

Article 5.8 Uruguay

Answer 12

dumping margin is de minimus (-2% normal value)
- if the volume of dumped imports from a particular country accounts for less than 3% of imports of the like product in the importing country, unless countries that individually account for less than 3% of imports collectively account for more than 7% of imports

Question 13

Article 7 Uruguay

Answer 13

provisional measures may be applied if an investigation has been initiated and a preliminary affirmative determination has been made of dumping and injury to a domestic industry

Question 14

Article 8

Answer 14

proceedings may be suspended or terminated on receipt of the satisfactory voluntary undertaking from any exporter to revise its prices or cease exports at dumped prices

Question 15

Leitner and Lester

Answer 15

Between 1995 and 2013, Leitner and lestern report 102 formal complaints relating to the application of anti dumping measures.

Question 16

How can price discrepancies be explained?

Answer 16

• able to sustain higher prices than when it is attempting to establish a presence in foreign markets for the first time.
• foreign exporter has some degree of market power in its own domestic market.

Question 17

Predation

Answer 17

incurring a loss in the short run, and then raising prices subsequently to supra-competitive or monopolistic levels

Question 18

Reforming anti dumping duty regimes?

Answer 18

• current antidumping laws are flagrantly discriminatory by imposing much more stringent disciplines on the pricing behaviour of foreign producers than the pricing constraints imposed under domestic competition on domestic producers.