Essay about Antidumping and the WTO

“Free trade is not working for the majority of the world. During a most recent period of rapid growth in global trade and investment — 1960 to 1998 — inequality worsened both internationally and within countries. The UN Development Program reports that the richest 20 percent of the world's population consume 86 percent of the world's resources while the poorest 80 percent consume just 14 percent. WTO rules have hastened these trends by opening up countries to foreign investment and thereby making it easier for production to go where the labor is cheapest and most easily exploited and environmental costs are low. This pulls down wages and environmental standards in developed countries that have to compete globally.”

Dumping: Dumping refers to the practice of a foreign country selling itsproduct in the home market at a price that is lower than its “fair value”. Whilethis can occur even in the presence of trade barriers, the elimination of tariffsin the home country increases the probability of this occurrence and cancause considerable harm to domestic industries that can be driven out ofbusiness altogether.

According to Article VI of GATT, during the Uruguay Round, antidumping means charging extra import duty on a product in order to bring its price closer to the fair value or to help domestic industries from injury. Also, you need to calculate the extent of dumping, investigate the impact to importing countries, and look into all economic factors that could affect before you can impose tariff (definition, n.d.).

In 1994, 120 nations formed the World Trade Organization (WTO) to administer international trade agreements and help settle trade disputes. President Bill Clinton convinced Congress to pass legislation that enabled the United States to participate in the World Trade Organization. Those who supported the World Trade Organization, highlighted benefits for American consumers, including cheaper imports, new markets, and copyright protection for the American entertainment industry. Opponents argued that the United States would be bound to accept the World Trade Organization’s rulings in trade disputes even if they hurt the American economy. However, Congress still passed the legislation.

Since 1897, the U.S. effectively has had antidumping laws on the books, and these laws have enabled the U.S. government to punish firms in other countries that send subsidized exports to the U.S. which is Countervailing Duty Law of 1897, 19 U.S.C. 1303 U.S. In addition, the Antidumping Act of 1921, Congress loosened the requirements to permit federal action to keep out foreign products not only if foreign companies engaged in predatory pricing, but merely if their products were deemed to be priced lower than similar American products, regardless of whether predatory pricing was an issue. Antidumping law views such imports as being sold at less than

With trade being a constant issue with world relations, the World Trade Organization immersed. This contemporary organization is the only global intercontinental organization apportioning the rules of trade between countries. The WTO standards were negotiated and signed by the majority of the world's trading nations and ratified in their

It is very difficult to find the way all of the international resolutions fairly works for all countries. Each country has their individual culture, and sometimes the culture is hardly understood for other countries. In globalization, the world trade is one of the most important sector in all countries, and WTO has a crucial role. It never should be controlled by few dominant countries, such as the US. Anytime WTO enacts international rules, all decision should be based on certain research and ethical purposes. Each of nations has different idea. For example, the reason 94% of Australian are against whaling is that they think that whales are scared animals, whereas Japanese or Norwegian people think whales are the same meat as beef and pork. There is no answer to decide which opinion is justice. However, if nations’ activities give critical damages to environment, nations have to decide to stop their activities to preserve nature. And all of prohibition should be based on scientific facts but should not be decided by individual perspective. I have no particular idea who serve on WTO, but I think it shouldn’t be consisted of only few dominant countries.

Dumping is defined as “a practice in which an exporter sets the price of a product in the domestic market at a high level, sets a lower price of a like product for an export and, by exporting the product with this price differential, causes a material injury to a domestic industry in the market of the importing country” (Narlikar, 2012). This simply means selling a product at a lower price than the farmers in a poorer country can afford. For example, the U.S. could sell Mexico a bushel of corn at $2 when Mexico can only afford to sell theirs at

According to the World Trade Organization, or WTO, dumping occurs when a foreign corporation sells a product at a price that is less than the corporation sells it in its own country (Boyes, 2012, p. 170). As a consumer, I am well aware of the economy and I am always looking for products at a good price; however, when it comes to dumping, there are both advantages and disadvantages. The advantage is when a country sells products they manufacture at a lower price, it does provide employment for residents of their country; however, the company must take a loss on the production of a product in order to boost their advantage in that particular market. Further, dumping can be used as a way to take over a market in another country, attempting to put the

Among the trilogy of trade remedy regimes- countervailing duty, safeguard and antidumping actions- antidumping actions are by far the remedy of choice. It 's a measure internationally adopted to stop unfair competition, regulate international market order and protect the security of the national industries. It 's adopted by an increasing number of countries as it 's playing an increasingly important role in international trade. It 's perhaps the most controversial subject involving foreign trade. The United States is the world 's biggest user of antidumping and has been for decades. China, on the other hand, has been the number-one target of antidumping by most countries for the past

Seven years of trade negotiations at last gave birth to the World Trade Organization (WTO) in 1995, the U.S. labor movement was one of its leading skeptics. A world trade organization, labor supporters argued, would only accelerate the headlong rush to laissez-faire by dismantling national regulations. It would overwhelm attempts by nations to defend living standards and the ability of unions to fight for wages and health and safety laws—and it would make it harder for nations to defend the rights of workers to join unions. Labor lobbied hard against the WTO. But now, ironically, the WTO could become a critical venue for advancing workers' rights worldwide. For the WTO has the power to review

According to the Haberler , Dumping is defined as “the sale of goods abroad at a price which is lower than the selling price of the same goods at the same time in the same circumstances at home, taking account of differences in transport costs.” It is a pricing practice in which a firm charges a lower price for the goods which are exported abroad, than it does for the same goods sold domestically. Dumping can only be practiced at the places where there is an imperfect

Columbia Encyclopedia, (1993) defined dumping as the selling of goods at less than normal price, usually as exports in international trade. It may be done by a producer, a group of producers, or a nation. However, dumping is usually done to drive competitors off the market and secure a monopoly, and/or to hinder foreign competition. Nations, in an effort to counterbalance international dumping, often resorted to flexible tariffs. International trade through acute competition from foreign producers often leads to dumping infractions of law. A policy regarding dumping, depends on its effectiveness in maintaining separate domestic and foreign

Throughout history nations have utilized trade barriers such as tariffs and embargoes to regulate trade among other nations (Bartlett, 1998). The purpose of such trade barriers was to provide safeguards for a nation's imports and exports. The philosophy surrounding the use of trade barriers has changed from time to time with there being periods when they were used extensively and periods when they were abandoned entirely. Prior to the First World War international trade was flourishing and although tariffs were being used by a variety of nations they did little to discourage trade. During and after the War, however, trading barriers between nations put heavy burdens on international trade and by the time that the Great Depression struck world trade had reached a point of near stagnation (Madsen, 2001).

     The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations. The goal is to help producers of goods and services, exporters, and importers conduct their business. The World Trade Organization came into being in 1995. One of the youngest of the international organizations, the WTO is the successor to the General Agreement on Tariffs and Trade (GATT) established in the wake of the Second World War. The World Trade Organization exists to ensure that trade between nations flows as smoothly, predictably and freely as possible. It provides and regulates the legal issues which governs world trade now .