Anti-dumping measures are represented by differential duties aimed at countering dumping, which is a form of unfair competition by foreign companies achieved through international price discrimination.
The procedure for defining anti-dumping duties is long and complex and takes place under the supervision of the WTO.
Anti-Dumping Under the WTO
Anti-dumping measures – taken by a government or an international organization – are aimed at counteract the dumping practices that occur when a good or service is sold on foreign markets at a lower price, in some cases, even at its production cost. Therefore, dumping is a practice of unfair competition and international price discrimination.
However, anti-dumping measures, which are defensive tools of the national economy, are also susceptible of an offensive use by the country that imposes them and, for this reason, are regulated within the World Trade Organization (WTO) by art. VI of the General Agreement on Tariffs and Trade 1994...
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