Anti dumping duties

and trade protectionism

Dumping:

• Refers to when a country is exporting a product to other country at prices lower than the normal value of the product on its own domestic market.

• A product is said to be dumped when its export price is less than its normal value of a like product in the domestic market in the exporting country.

Effects of Dumping:

• Dumping can harm the domestic industry by reducing its

• Sales volume and • Market shares, as well as its• Sales prices. • This in turn can result in decline in

profitability, job losses and, in the worst case, in the domestic industry going out of business.

Anti Dumping Duty:

• “Is imposed by the Government of importing country on a imported goods when those goods are sold at a price that is less than "fair value“

• And when those imported goods are found to cause or to threaten material injury to industry of the importing country.”

• Anti dumping duty is provided by WTO as instrument to stabilize the fair trade.

• It only serves the purpose of providing remedy to the domestic industry against the injury caused by the unfair trade practice of dumping.

parameters used to assess dumping of goods from a

country:• If the export price is lower than

• the normal value,

• it constitutes dumping. Thus, there are two fundamental parameters used for determination of dumping, namely, the normal value and the export price.

Who conduct investigation:• In Pakistan, • The National Tariff Commission

(“Commission”) is a body responsible for conduction of an antidumping investigation.

• Once the essential elements for imposition of antidumping duty are determined, after due process, the Commission may impose antidumping duty equal to the dumping margin established.