Anti-dumping laws and practices - USA and China. Among the trilogy of trade remedy regimes – countervailing duties, safeguard actions and antidumping – antidumping actions are by far the remedy of choice. It is a measure adopted internationally to stop unfair competition, regulate international market order and protect the safety of domestic industries. It is being adopted by a growing number of countries as it plays an increasingly important role in international trade. It is perhaps the most controversial topic involving foreign trade. The United States is the world's largest user of antidumping and has been for decades. China, on the other hand, has been the number one target of anti-dumping measures by most countries over the past decade. The first dumping lawsuit against China dates back to 1979, when Europeans accused Chinese saccharin producers of dumping. If a company exports a product at a lower price than it normally charges in its home market, it is said to be "dumping" the product. . The WTO Agreement makes no judgment. Its focus is on how governments may or may not respond to dumping: it governs anti-dumping actions and is often called the “Anti-Dumping Agreement” (Agreement on the Implementation of Article VI of the General Agreement on Tariffs and Trade, 1994) . Anti-dumping refers to a legal system under which a country's government investigates import dumping and takes corresponding anti-dumping measures in accordance with the law. Generally, the WTO Agreement allows governments to take action against dumping where there is actual ("material") harm to a competing domestic industry. To do this the government must be able to demonstrate that dumping is taking place, calculate the extent of the dumping, and demonstrate that the dumping is causing harm or threatening to do so. Typically, anti-dumping action means imposing additional import duties on a particular product from a particular exporting country in order to “bring” its price closer to “normal value” or to eliminate injury to the domestic industry in the importing country. There are many different ways to calculate whether a particular product is dumped. The agreement (AD agreement) narrows the range of possible options to three methods. The principal is based on the price in the exporter's domestic market. When this cannot be used, two alternatives are available... middle of paper... and harmful to the average American consumer. Anti-dumping is a widely used remedy in international trade. Some countries use it more commonly than others. Some initiate numerous anti-dumping lawsuits, others are the targets. There are as many defenders as opponents at national and world level. Anti-dumping actions are to some extent very subjective and this makes it, among other arguments, a very controversial tool. Some even consider it a threat to international trade and demonstrate that it is against free trade. Anti-dumping involves too much emotion and political influence. In many cases it is a very short-term remedy for a difficult situation. However, it makes life more difficult for those who think about predatory entry and unfair competition. Both are against market order and fair competition with equal opportunities for all. It is unethical and harmful to capture a market with prohibited actions. Anti-dumping will still arouse emotions and protests: as long as there are countries whose anti-dumping institutions are under political pressure to protect particular sectors/industries and as long as there are countries willing to conquer foreign markets at any price.
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