Dumping
What it is? ❓
AGREEMENT ✏
Determination ❌
Injury ⛔
Causation ⚠
price discrimination 🔥
export price less than normal value
condemned
if it causes or threatens to cause
material injury of the importing country ⛔
limits
provisional measures
price undertakings
definitive anti-dumping duties
fair comparison export price/normal value ✅
export price
Margin
between purchasers in different national markets
Types (VINER) : :
Sales at prices with which (foreign) competitors cannot cope
Sales at prices abroad which are lower than current home prices ⚠
Sales at prices below foreign market prices
Sales at prices unremunerative to the sellers
profit
needs comparability
spurious dumping (Viner)
normal value
art. 2.1 ✏
Investigation 🏁
records exporter or producer
indicate information for fair comparison
gral accounting pples
reasonably reflect costs
EU - Biodiesel
US - Hot Rolled Steel
Ukraine - Ammonium Nitrate
art. 2.2.1.1 ✏
ordinary course of trade
below costs?
substantial quantities
extended period of time
do not recover within reasonable period
affiliated parties?
of "like product"
for consumption in the exporting country
art. 2.6 ✏
identical/close ressemblance
due allowance for differences
art. 2.4 ✏
comparable price
Not straightforward?
low sales:
third country price
art. 2.7 ✏
constructing normal value ♻
OR
art. 2.2 ✏
profit + cost of production + reasonable amount SG&A
transaction price
art. 2.3 ✏
constructed export price ♻
OR
allowances costs and profits
first sold to independent buyer
art. 2.4 ✏
same level of trade
ex factory normally
non-market economy
downstream sales prices
additional sales taxes
costs and profits of the reseller
physical characteristics
for any other difference
Us - Softwood lumber V
not unreasonable burden of proof
Zeroing?
only considering positive comparisons
export price < normal value
export price - normal value / export price
for each exporter/foreign producer
prices of all their export transactions
art. 2.4.2 ✏
W-W (weighed average)
T-T (transaction)
W-T
EC - Bed Linen
Us - Softwood lumber V 21.5
pattern of export prices that differ significantly
US - Washing Machines
US - Differential Pricing Methodology ❗
to the domestic industry
art. 4.1 ✏
domestic producers as a whole
major proportion of them
OR
Material risk of distorsion
quantitative
qualitative
EC- Fasteners (China)
Types
Material injury
Threat of material injury
Material retardation
between dumped imports and the injury to domestic industry
art. 3.1 ✏
objective examination
positive evidence
quality
good faith/fairness
Volume dumped imports and effect on prices
impact of these imports on domestic industry
art. 3.2 ✏
significant increase/price undercutting
may lead to price depression/suppression
China - HP-SSST
less 5%
no sales
Australia - A4 paper
what matters is no comparison
association or compensatory arrangement
cost
costs of production (direct)
manufacturing
labour
inputs
materials
fixed costs (overheads)
building, equipment
operating costs
not associated with specific sales
price cannot go under! ‼
imports more one country
assessment domestic production of like product
no requirement that undercutting leads to depression/suppression
art. 3.4 ✏
economic factors having a bearing
art. 3.7 ✏
Significant rate increase dumped imports
capacity exporter
inventories product
import prices with impact
was the domestic ind established?
was the establishment retarded?
Morocco - Hot Rolled Steel (Turkey)
art. 3.5 ✏
non-attribution
not the sole cause
genuine and substantial
Factors
trade-restrictive practices of and competition between foreign and domestic producers
developments in technology
contraction in demand or changes in the pattern of consumption
export performance and productivity
volume and prices not sold at dumping prices
Thailand - H Beams
Ilustrative list
cumulation
art. 3.3 ✏
effects more than one country
permitted!
initiation 🔓
art. 5 ✏
evidence needed
accurate
not if
de minimis (>2%)
volume negligible >3% imports
conduct
art. 6 ✏
notice
questionnaires
at least 30 days
full opportunity!
non-confidential summaries
good cause
not all info but accurate
facts available
but not less fav outcome only for that
data <12 months, injury at least 3 years
can be concealed
time