Dumping Subsidy and Trade Disputes
Too many questions have been asked if dumping implies unfair trade practices. Recently, disputes over dumping make it difficult to decide whether or not we should allow this activity to enter our country. Many of us are equally familiar that more foreign imports mean more jobs are being destroyed in American industries. Because of this particular reason, WTO and GATT members have worked together to see if there is a relationship between dumping and unjust trades. In their study, some have discovered that dumping benefits the economy and helps increase competitions among various industries in the U.S. However, there were also some others who took the opposite side by arguing that dumping is an unreasonable practice of trade and may American economy in the future. If dumping really affects trade and costs jobs in the US, then what are the measures needed to prevent this practice and help maintain fair trade in the global economy.
In Section 771(34) of the Act (19 U.S.C 1677(34)) “dumping is defined as the sale or likely sale of goods at less than fair value” (Beckman, Discrimination and Dumping—Web page). To simply put, dumping is the selling of a product in the United States at a price which is lower than the price for which it is sold in the home market after adjustments for differences in the merchandise, the quantities purchased, and circumstances of sale. For example, Japanese exports of digital cameras into the U.S at lower prices than at its home country; if this practice can be justified then Japan is guilty of dumping. But the question that we are concern here is whether Japanese dumping provides any benefits to our economy.
According to Professor Paul Krugman from Princeton...
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...ct that dumping hurts the economy as a whole and its subsidy is an unfair practice, and must be removed or prohibited from this global economy.
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World trade. Is something we need, Wal-Mart is an active participant i world trading allwin us to get the best deal of any import
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