Dömping

Dömping is a practice where a company exports a product at a price lower than its domestic market price or its cost of production. This is often done to gain a competitive advantage in a foreign market. Critics argue that dömping can harm domestic industries in the importing country by making it difficult for them to compete with the lower-priced imports.

Governments may impose anti-dömping measures to counteract the effects of dömping. These measures typically involve imposing additional duties, known as anti-dömping duties, on the imported goods. The purpose of these duties is to raise the price of the imported product to a level that is considered fair, thereby protecting the domestic industry.

The World Trade Organization (WTO) has rules governing dömping. Article VI of the General Agreement on Tariffs and Trade (GATT) permits members to take action against dömping. However, these actions must be justified and applied in accordance with WTO agreements. To impose anti-dömping duties, an importing country must conduct an investigation to determine if dömping has occurred, if it has caused injury to the domestic industry, and if there is a causal link between the two.

Dömping can be a complex issue with economic and political implications. While it can lead to lower prices for consumers in the importing country, it also raises concerns about fair competition and the sustainability of domestic industries.