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Volume & Issue no: Volume 3, Issue 6, June 2014


Evaluating the Efficacy of GATT/WTO Agreement on Antidumping
Author Name:
K R Kaushik, DR. Sharat Sharma
ABSTRACT WTO in general advocates for free trade and the concept of antidumping appears contrary to the very purpose of WTO. However, free trade should be fair trade also and therefore; it should not lead to a situation where an established industry in the importing country collapses and dumping by foreign exporters results into monopolization of markets in due course. So, the basic objective of the WTO antidumping agreement is to restrict “dumping” that leads to the material injury to the domestic industry in the host country. Developed Countries are using this instrument for more than nine decades but developing countries mainly used antidumping duty after the emergence of WTO in 1995 and surpassed the developed countries in the last two decades. Certain weaknesses of the GATT/WTO agreement on antidumping has proved to be problematic in the international trade. For example, No definition of like product, Low prices charged for sales in the domestic market are normally ignored to boost up the domestic sales price, Investigating authorities typically follow accounting practices of the importing country, Confusion of date of sale and Exchange rates, Fixation of dumping margin and Circumvention lead to Controversial practices and methodologies. Particularly the “Zeroing Methodology” used by the industrialized countries in calculation of dumping margin has aggravated the situation. The fact remains that antidumping actions are increasing substantially. During 1.1.1995 to 30th June, 2013, 4358 antidumping investigations have been made throughout the world and 2795 antidumping actions are in force. Base metals & articles (1233 cases) and chemical and Allied products (879 cases) are the most targeted sectors facing antidumping actions worldwide. India has emerged as a major user of antidumping measures with 513 impositions. It is also facing 99 antidumping measures on its products. US has imposed 318 measures and facing 148 antidumping measures. There are 102 disputes pending in Dispute Settlement Body of WTO. Trading countries are almost at a trade war and antidumping measures are being challenged at WTO frequently, but no solution has been found so far to reform the antidumping agreement. This paper presents some recommendations to reform the WTO Antidumping Agreement based on a research. Data is collected from 100 stakeholders through direct interviews, questionnaires, internet surfing and from print media/magazines/ periodicals. Details of such links/ magazines are cited in the references. Five point Likert Scale has been used for collection of data and the collected data has been analyzed on SPSS 16.0 Keywords: WTO, Antidumping, Reforms, Trade war, DSB.
Cite this article:
K R Kaushik, DR. Sharat Sharma , " Evaluating the Efficacy of GATT/WTO Agreement on Antidumping" , International Journal of Application or Innovation in Engineering & Management (IJAIEM) , Volume 3, Issue 6, June 2014 , pp. 373-381 , ISSN 2319 - 4847.
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