antidumpings

Antidumping measures refer to duties or other restrictions imposed by an importing country on imported goods that are priced below their fair market value and that cause material injury to a domestic industry. These measures aim to restore a competitive balance by offsetting the unfair price advantage created by dumping. They are primarily governed by the World Trade Organization’s Anti-Dumping Agreement, which sets conditions for initiating investigations, calculating dumping margins, determining injury, and administering duties.

An antidumping investigation is typically initiated when a domestic industry or government authority files a petition alleging that imports are dumped and that the dumped imports cause injury. Authorities review evidence, may conduct inquiries, and may impose provisional (temporary) measures if warranted. A final determination assesses whether dumping occurs and whether it causes material injury or threat of material injury, informing the decision to levy duties.

Dumping margins are calculated by comparing the normal value of the product (the price in the exporting country or a constructed value) with the export price to the importing country. If normal value cannot be determined, substitutes or surrogate values may be used, especially for non-market economies. The level and form of duties—typically ad valorem or specific rates—reflect the magnitude of the dumping margin and the value of the dumped imports.

The injury analysis examines the impact on the domestic industry, including price depression, lost sales or profits, and reduced production capacity. A causal link between dumped imports and the observed injury must be demonstrated, though other factors may also be considered.

If dumping and injury are established, duties are imposed for a defined period, commonly up to five years, with sunset reviews to assess continued justification. Antidumping measures are subject to WTO dispute settlement if challenged, and parties may seek reconsideration or modification through review procedures.