1. FORM OF REMEDY MEASURES
WTO system allows “protection” in specific
cases by means of trade remedy measures
Anti-Dumping - Additional import duties
Countervailing - Additional import duties
Safeguards - Additional import duties
or quotas
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2. AD and CVD legislation Dumping Injury to the domestic market
How is domestic market defined?
Relation between dumping and injury to the domestic market
Subsidy
Relation between subsidy and injury to the domestic market
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3. SUMMARY OF AD source : WTO
Year initiation Final measures
Total
NOTE: The two columns do not balance due to time periods to
complete investigations
Initiations Final measures
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4. Source: “The economic and Strategic motives for antidumping filing” by Thomas prusa and susan skeath
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5. US-Antidumping law
If a U.S. industry believes that it is being injured by unfair competition through dumping or subsidization of a foreign product, it may request the imposition of antidumping or countervailing duties by filing a petition with
Import Administration/International trade administration (department of commerce)- (ITA)
United States International Trade Commission – (ITC)
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6. US-Antidumping law Steps undertaken in an AD investigation
Petition filed by the firm/firms on behalf of the industry (petitioners must represent at least 25% of domestic production )
ITC preliminary finding
ITA preliminary finding
ITA final finding
ITC final finding
The duties are assessed as a percentage of the value of the imports and are equivalent to the dumping and subsidy margins.
For example, if Commerce finds a dumping margin of 35%, the U.S. Customs Service will collect a 35% duty on the product at the time of importation into the United States in order to offset the amount of dumping or subsidy.
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7. Some Statistics
ITC received a total of 1,430 petitions for AD and CVD during fiscal year
These cases involved 54 billion dollars in trade from countries subject to investigations.
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8. Canada-Antidumping law
If an industry in Canada believes that it is being injured by unfair competition through dumping or subsidization of a foreign product, it may request the imposition of antidumping or countervailing duties by filing a petition with
Canada Customs and Revenue Agency (CCRA)
Canada's anti-dumping and countervailing law is contained in the Special Import Measures Act (SIMA).
The Canada Customs and Revenue Agency (CCRA) and the Canadian International Trade Tribunal (Tribunal) are jointly responsible for administering SIMA
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9. Canada-Antidumping law
Steps undertaken in an AD investigation
Petition filed by the firm/firms on behalf of the industry (petitioners must represent at least 25% of domestic production )
CCRA starts an investigation
Sends a copy of the Canadian International Trade Tribunal (Tribunal)
Tribunal’s preliminary Injury finding
CCRA preliminary dumping/subsidizing finding
CCRA final dumping/subsidizing finding
Tribunal’s final injury finding
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10. Canada-Antidumping law
The duties are assessed as a percentage of the value of the imports and are equivalent to the dumping and subsidy margins.
The process takes about seven months from when the CCRA starts an investigation until the Tribunal makes a final decision on the injury matter.
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11. India-Antidumping law
If an industry believes that it is being injured by unfair competition through dumping or subsidization of a foreign product, it may request the imposition of antidumping or countervailing duties by filing a petition with
Director general of Antidumping and Allied duties (DGAD)
It falls under the department of commerce which is under the Ministry of Commerce and Industry.
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12. India-Antidumping law
Steps undertaken in an AD investigation
Petition filed by the firm/firms on behalf of the industry (petitioners must represent at least 25% of domestic production )
DGAD preliminary finding
Injury
Dumping
DGAD final finding
The duties are assessed as a percentage of the value of the imports and are equivalent to the dumping and subsidy margins.
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13. Some Statistics: COUNTRY-WISE ANTI-DUMPING CASES INITIATED BY DGAD. 1
China 51 2 EU 20 3
Korea 18 4
Japan 17 5
USA 16 6
Taiwan 7
Singapore 14 8
Russia 11
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14. Summary- Comparison Historical Origins-First AD case
Canada Statute: to protect against steel dumped in Canada by US firms
United States Act and U.S. Tariff Act of 1921: to protect against post WW1 dumping from Europe
India-national law on anti-dumpingin place since 1985.
However, the first case of anti-dumping was initiated only in 1992
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15. Summary- Comparison single entity – India, EU
Organization of Government Agency Responsibilities for Administering AD/CVD Laws:
single entity – India, EU
bifurcated system - United States and Canada
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16. Summary- Comparison AD Initiations
Country/Year
1995
1996
1997
1998
1999
2000
2001
2002
Total
Canada 11 5 14 8 18 21 25
107
India 6 13 27 65 41 79
331 US 22 15 36 47 76 35
292
As reported by the members
Point to note: Volume of imports covered
Statistics are per country
Source:
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17. WTO Dispute?
Ideas 1 2 3 4 5 6
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18. Midterm
Coverage for the midterm: All the additional readings + Chapter 2, 3, 4, 8, 9 and pages from chapter 6
Stay close to class lectures
Go through your assignments
Good Luck!
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