Adverse Effect of Antidumping Laws on Developing Countries

Tesis (Bachelor) , 2010 , 53 Páginas

Economía - Relaciones económicas internacionales

An unfair trade practice, dumping, occurs when a company sells its products abroad at prices lower than the price of the market in which they are produced, or even below cost. This mainly happens because export firms may have an excess capacity, and want to have a larger market share in a foreign country against domestic products. This practice is internationally considered as a practice of unfair competition. Therefore, anti-dumping measures are imposed. The anti-dumping duty is independent of import duties and functions additionally to the common tariff practices.

Many times, however, it may be the case that anti-dumping measures are imposed on certain products without having them previously dumped. This is more than dangerous. The unfair imposition of anti-dumping measures aims to strengthen the local industry against imported goods, which worsens protectionism worldwide .

Recently, the U.S. and China were engaged in announcements of additional mutual anti-dumping measures. Within a very short time, the U.S. imposed high temporary tariffs on Chinese aluminium products and steel as well as some types of paper. China responded by imposing tough antidumping tariffs on U.S. imports of chicken and nylon in retaliation. In general, the confirmation of the existence of this illegal practice is extremely difficult and requires extensive timely research. Furthermore, it should also be investigated whether the particular industry has been harmed.

In the present study, the framework of international trade and the various measures such as tariffs and quotas will be presented to understand better the international economic environment. Dumping and antidumping measures will be examined both on the financial side but also on the legal side. Finally, the effect of antidumping measures to developing countries will be further studied.

Table of Contents

Introduction

International trade

Global economic competition and the liberalization trend of international trade

The unstable economic hegemony of the U.S

Trade Barriers
Tariffs
Tariff on a single commodity with a stable global price
Non-Tariff Barriers
Export Subsidies - Premiums
Restrictions On Imports – Exports // Import Quotas
Voluntary Export Restraints – VER
Local Content Requirements

Unofficial Barriers
Administrative Policies
Embargoes
International Cartels
Dumping Policies

Adoption of Antidumping Measures
Antidumping measures

Dumping – Legal Framework

Existing Law

International Framework

European Community Legislation

Dumping and countervailable subsidies

Dumping and Subsidies

Interest of the Community
Material injury and causal link
Legal framework
Changes to EU legislation in

Conclusion on measures

Reasons for using measures of economic trade policy
Political Reasons Jobs & Business
Support of Economic & Foreign Policy
Consumer Protection
Protection of Human Rights
Economic Reasons
State Revenues
Infant Industry

Shortcomings of GATT

Reform of the Anti-Dumping Code

The Agreement On Technical Barriers To Trade Goods – Environmental Dumping

Conclusions on the Uruguay Round

Development and Developing Countries

Developing Countries and Protectionism

Recent Development – Tariffs and AntiDumping

The theory of Customs Union - Trade Diversion

Trade effects of antidumping protection

“South – South” trade – antidumping

Conclusion

Reference List

• Curso: Economics
• Autor: Fotini Mastroianni (Autor)
• Año de publicación: 2010
• Páginas: 53
• No. de catálogo: V346957
• ISBN (Ebook): 9783668377554
• ISBN (Libro): 9783668377561
• Idioma: Inglés
• Etiqueta: economics, dumping, antidumping, protectionism