Dumping is considered an unlawful practice of selling products in a foreign country for less than the price charged for the same or comparable goods in the producer’s home market. (Schafer, Agusti, Dhoogle & Earle, 2012) There is a three sided debate when it comes to defining why Dumping is unfair and to whom it is affecting. The members of this debate are the customer, the foreign manufacturer, and the domestic market. The customer wants the best price he or she can get when making a purchase. The importer does not see harm in exporting surplus goods at surplus price in order to avoid layoffs. The domestic market however is damaged by the surge of below-cost retail goods; local manufacturers cannot compete and jobs are lost. The claims of dumping are the most frequently charged International Trade Law. The GATT provisions on dumping are found in GATT 1994 Article VI and in the 1994 WTO Antidumping Agreement. The 1994 agreement provides complex rules for determining when dumping has occurred and procedures for resolving dumping disputes. The WTO agreement provides that an exporter may be guilty of dumping if goods are sold at a price less than what is charged for a like product in the country of export. Penalties for antidumping include duties or taxes only if the dumpers action threatens or causes “material injury” to a domestic industry producing “like products.” (Schafer, Agusti, Dhoogle & Earle, 2012) In the United States, there are two federal agencies involved in the investigation. The United States International Trade Administration (ITA) of the U.S. Department of Commerce determines whether or not the product is being sold for less than normal value. The International Trade Commission (ITC) determines whether th... ... middle of paper ... ...ovided by Daniel Ikenson, “will lead to the conclusion that the U.S. anti-dumping policy is undermining the laudable efforts of the administration to keep the U.S.-China relationship on sound footing.” (Ikenson, 2005) Since becoming a member of the WTO, It can be expected that China in future will actively use its antidumping regulations. This tendency of using antidumping as a potential retaliatory means against actions from the developed world is becoming a widespread phenomenon in less developed countries. The potential for China to initiate antidumping actions against the EU is again likely to translate in a lower number of EU antidumping cases against China. (Lin, 2002) The answer to the question, “whether dumping is good, harmful, or not an issue” becomes clear, when you follow the basic ethical guideline of treating others how you would like to be treated.
...eview the EU arms embargo on China: the clash between value and rationale in the European security strategy”, Perspectives. Review of International Affairs (2004) 22 pp. 43-58
Office of Industries, U.S. International Trade Commission.(2009).Export controls: an overview of their use, economic effects, and treatment in the global trading system. Retrieved from United States International Trade Commission http://www.usitc.gov/publications/332/working_papers/ID-23.pdf
Terrill, Ross. " China Is Rising, but for How Long?" New York Times. N.p.,
Trading internationally, along with foreign trading policies has always been a controversial issue in America. Free trade is just as taboo if not more so. Today, the United States has made an attempt to maintain an open market of trading. Free trading greatly benefits a nation’s economy. The history of trade in The United States dates back over half a century ago. Through a substantial part of history, the United States had implemented rather extensive barriers and restrictions regarding importation, in order to better protect domestic suppliers from any serious foreign rivalry. Regardless, of Government restrictions and barriers set in place to avoid foreign competition it is healthy for our nation to have motivation and have the desire to
With so much focus on the positive elements of free trade, the negative aspects of an open system are often overlooked. However, they do exist, and protectionism is needed. Consequently, safeguards are built into the system. States look out for their own good, whether that is through the use of escape clauses or the choice of the optimal forum for dispute settlement based on the precedent they do or do not want set. This paper argues that protectionism is valuable and inherent in the current system; however, not enough. Powerful states exploit weaker states, and “free trade” exacerbates the problem. I will first discuss why free trade does not work. Then, I will explain how the current system enables the inherent protectionist attitude of states. Finally, I will analyze the fairness of the system.
The current trade imbalance is caused in large part by intrinsic features of China's labor market and consumer base. The vast majority of China's 1.3 billion people still live in rural areas. China has, by some estimates, a surplus rural labor force of 120 million people, many of whom migrate to industrial centers to look for factory work, and drive down wages. As long as wages are low, the United States will continue to gobble up products made in China, while Chinese consumers will prefer to buy cheaper, homespun alternatives to American products. The rise in trade deficit with China has come at a cost to jobs in the United States, accordin...
There are two potential losers from such action. First, all domestic producers who are not competitive would lose because they would be out-competed by low-cost import. Second, all exporters who previously enjoyed local subsidies would lose because their governments cannot subsidize their production.
...ve significant trading agreements that the United States desperately depends on. Collier completely underestimates the United States with this belief that this country depends on the flourishing of the bottom billion countries.
Free trade is a form of economic policy which allows countries to import and export goods among each other with no government interference. In recent years there has been a general consensus in economist’s stance on free trade. They view free trade as an asset. Free trade allows for an abundance of goods with increased varieties and increased availability. The products become cheaper for consumers and no one company monopolizes an industry. The system of free trade has been highly controversial. While free trade benefits consumers it has the potential to hurt manufacturers and businesses thus creating a debate between supporters of free trade and those with antagonistic positions.
Global trade occurs between many nations. While the intent of free trade is just that for trade to occur freely without government intervention in the open market. The truth is that governments do intervene in free trade imposing many sanctions, tariffs, quotas and other economic policies to limit free trade. To better regulate governments role in free trade a General Agreement on Tariffs and Trade (GATT) was created in 1947 (Carbaugh, 2011, p. 191). GATT helped trade by having all nations, included in the original group, trade on mutually beneficial policies. GATT has since been replaced by the World Trade Organization (WTO) that still honors many policies of GATT that now includes 153 nations that is inclusive of 97% of all world trade.
One of the most cited arguments for intervention is that of protecting jobs and industries from unfair foreign competition (Hill). While industries like aerospace are protected given their importance for national security, job protection appears as a result of unions and industries putting political pressure given the threat of more efficient foreign firms (Hill). Many countries achieve this by increasing the tariffs on imports of foreign products. What really happens when a certain industry is ...
...y supply and this causes the collapse in the U.S. and elsewhere (Pinnell, Lecture notes, 3/23). Consequently, countries become very protectionist to protect firms at home and international trade collapses (Pinnell, Lecture notes, 3/23). Therefore, states must make decisions with reciprocity and consequences in mind (Pinnell, Lecture notes, 3/23).
Sidwell, M.,2008. Unfair Trade. [online]. London: Adam Smith Institute. Available at [Accessed 17th Feb 2014].
International trading has had its delays and road blocks, which has created a number of problems for countries around the world. Countries, fighting with one another to get the better deal, create tariffs and taxes to maximize their profit. This fighting leads to bad relationships with competing countries, and the little producing countries get the short end of this stick. Regulations and organizations have been established to help everyone get the best deal, such as the World Trade Organization (WTO), but not everyone wants help, especially from an organization that seems to help only the big countries and those they want to trade with. This paper will be discussing international trading with emphasis on national sovereignty, the World Trade Organization, and how the WTO impacts trading countries.
...side of any trade partner with China because of its desire for cheap labor which has cost America countless manufacturing jobs (Rendell) and thus, making China a worthy adversary to claim number one spot for the world’s best economy.