What is Dumping?

Dumping occurs when a company exports a product to another country at a price lower than its fair market value (usually the price it charges in its home market or the full cost of production). This can harm industries in the importing country, as local businesses cannot compete with the low prices.

What are Anti-Dumping Measures?

Anti-dumping measures are trade remedies that a country/the EU can impose to protect its domestic industries from unfair foreign competition. These measures usually take the form of duties (extra tariffs) placed on the imported goods to raise their price to a fair level.

How do Anti-Dumping Proceedings Work?

1. Filing a complaint: A domestic industry, usually represented by businesses or trade associations that together represent a certain percentage of domestic     production of the product at issue, files a complaint with the relevant trade authority (e.g., the European Commission in the EU or the Department of Commerce in the U.S.).
2. Investigation: The authority investigates whether dumping is occurring by comparing the export price to the home market price or cost of production of the goods. They also assess if this dumping is causing material harm to the domestic industry.
3. Decision: If dumping and injury are confirmed, anti-dumping duties are imposed on the specific foreign products to offset the unfair price advantage.

Who Enforces These Measures?

• EU: European Commission (Directorate-General for Trade) and customs authorities of the EU Member States
• USA: U.S. Department of Commerce and U.S. Customs and Border Protection
• China: Ministry of Commerce (MOFCOM)

Duration of Protection

Anti-dumping duties are typically imposed for up to five years, but they can be extended if needed. In many cases, protection lasts up to 12 years. In exceptional cases, it lasts decades.

Why is it Important?

• For domestic businesses, anti-dumping measures level the playing field by ensuring that foreign competitors do not unfairly undercut local prices.
• For foreign competitors, anti-dumping measures may result in being shut out of the market.
• For domestic customers relying on imports, anti-dumping measures increase the cost of those imports, making inputs more expensive.

Complainants & Respondents in Anti-Dumping Proceedings