Anti Dumping

Dr. Intan Soeparna

 If a company exports a product at a price lower than the
price it normally charges on its own home market, it is
said to be “dumping” the product.
 The WTO Agreement does not regulate the actions of
companies engaged in "dumping". Its focus is on how
governments can or cannot react to dumping — it
disciplines anti-dumping actions, and it is often called
the “Anti-dumping Agreement”
Example: China v. India Silk
 China is the world's largest producer of silk and India is its
largest market.

 The problem is that India is also a major manufacturer of silk.

 Indian silk producers claim that the price of Chinese silk in

India is so low that they cannot compete.

 They say the Chinese must be "dumping", or selling their

products at below what they cost to produce.
 dumping is to be ‘condemned’ if it causes injury to
the domestic industry of the importing country
 The essence of the WTO rules on dumping is that
Members are allowed to take certain measures,
which are otherwise WTO-inconsistent, to protect
their domestic industry from the injurious effects
of dumping.
 Article VI of the GATT 1994 states, inrelevant
part, that:
“The [Members] recognize that dumping . . . is to be
condemned if it causes or threatens material injury to
an established industry in the territory of a [Member]
or materially retards the establishment of a domestic
industry.”
 Consequently, ArticleVI of the GATT 1994 and
the Anti-Dumping Agreement provide a
framework of substantive and procedural rules to
govern how a Member may counteract or ‘remedy’
dumping, through the imposition of ‘anti-
dumping’ measures.
 Article 1 of the Anti-Dumping Agreement specifies
that:
 An anti-dumping measure shall be applied only under
the circumstances provided for in Article VI of GATT
1994 and pursuant to investigations initiated and
conducted in accordance with the provisions of this
Agreement. The following provisions govern the
application of Article VI of GATT1994 in so far as
action is taken under anti-dumping legislation or
regulations.
 there is dumping;
 the domestic industry producing the like product
in the importing country is suffering injury; and
 there is a causal link between the dumping and the
injury.
 In response to injurious dumping, Members may
take anti-dumping measures
Anti Dumping Investigation
1. Investigation
 The domestic investigating authorities can
instigate an investigation on their own initiative
Article 5.3 of the Anti-Dumping Agreement requires
that the investigating authorities examine the
accuracy and adequacy of the evidence provided in
the application to determine whether there is
sufficient evidence to justify the initiation of the
investigation
 Period of Invesitigation no more than 12 months
 Conduct of the investigation, Article 6.1 requires
that all interested parties in an anti-dumping
investigation be given notice of the information
which the authorities require and ample
opportunity to present in writing all evidence
which they consider relevant in respect of the
investigation
Anti Dumping Measures
The Anti-Dumping Agreement provides for three
kinds of anti-dumping measures:
 provisional measures;
 price undertakings; and
 definitive anti-dumping duties
1) Provisional Measures
 To apply a provisional anti-dumping measure,
investigating authorities must make a preliminary
affirmative determination of dumping, injury and
causation.
2) Price Undertakings
 Article 8 of the Anti-Dumping Agreement provides for
the possibility of offering and accepting price
undertakings as an alternative to the imposition of anti-
dumping duties.
 Undertakings to revise prices or cease exports at the
dumped price may be entered into only after the
investigating authorities have made an affirmative
preliminary determination of dumping, injury and
causation
 Undertaking by an exporter to raise the export
price of the product to avoid the possibility of an
anti-dumping duty.
3) definitive anti-dumping duties
Anti-dumping duty (ADD) is imposed in addition to
any normal customs duty for which the goods being
imported are liable.
 Pemerintah Indonesia menggugat Australia terkait
tuduhan tindakan dumping dan subsidi produk
kertas fotokopi ukuran A4, termasuk pengenaan
Bea Masuk Anti-Dumping (BMAD) terhadap tiga
perusahaan asal Indonesia. Pemerintah Australia
resmi mempublikasikan laporan hasil
penyelidikan tindakan dumping dan subsidi
produk kertas tersebut pada 19 April 2017 lalu.