Circumvention of Trade Defence Measures and Business Ethics
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With the rise of globalization, the debate around free trade versus fair trade and liberalism versus protectionism has become increasingly complicated. At times, the regulations of the World Trade Organization seem to pit developed markets against emerging markets as governments attempt to expand international trade while at the same time protecting local industry. To this end, antidumping measures have been extensively developed as a way to block foreign low-cost goods (often produced in emerging countries) from entering domestic markets. In response, some exporters have begun to circumvent these antidumping measures using strategies such as transhipment, assembly operations, and slightly modified products. While previous studies have addressed the ethical aspects of antidumping measures, this study will focus on the ethics of circumvention strategies with a special focus on the theories on legal compliance and, specifically, civil disobedience and conscientious evasion.
KeywordsAntidumping World Trade Organization Business ethics Circumvention Civil disobedience Conscientious evasion Legal compliance Trade defence instruments
Advisory Centre on WTO Law
Association of Southeast Asian Nations
Corporate Social Responsibility
Dispute Settlement Body
Dispute Settlement Understanding
General Agreement on Tariffs and Trade
World Trade Organisation
The authors would like to thank Dr. Alain Anquetil, Professor of Ethics at ESSCA, for his insightful feedback on their work and Alliance Europa.
Compliance with Ethical Standards
Conflict of interest
Authors Antonella Forganni and Heidi Reed declare that there is no conflict of interest.
This article does not contain any studies with human participants or animals performed by any of the authors.
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