Dumping

Write short notes on any two of the following : (a) Dumping

Imagine yourself as an entrepreneur, let’s say you sell utensils for $20 a set things are good. One day though another salesperson shows up in your neighborhood and they’re selling basically the same utensil set but for only half of your price. So how do you feel about that maybe you feel like you’ve just been dumped.

Dumping happens a lot in global trade. It’s when a company exports a product and a lower price than what it charges at home on a global stage. All sorts of items are dumped from intermediate products like steel bars to food like shrimp to finish products like washing machines and tires

So when dumping happens how do American companies respond in the u.s. if a company believes they are being harmed by a dumped product. They can petition the US government for anti dumping measures which usually mean tariffs on the product that will offset the amount of the dumping. So back here in the United States before the US government responds with measures like tariffs the company has to prove that the dumping is really happening that means the petitioners have to show two things positioners have to show the US International Trade Commission the ITC that the dumped products are harmful to their industry.

If the ITC approves then the Commerce Department also investigates and figures out what measures would balance out the prices by the way the foreign company or the country or a domestic company that is the importer. That’s being accused is allowed to defend themselves throughout. This entire process once an anti dumping measure has been approved. In the US, it lasts for five years until it’s reviewed again and if the dumping has gone away, then the Duty goes away right now.

The US has 340 anti dumping orders on products from 45 countries with China and Korea having the most. China has the most by a ton so that’s what it means to be dumped.