Dumping Alexandr Sysoiev ED-41

Contents What is dumping? Like Products Normal Value Injury Impact Remedial Action Case Studies Conclusions

A product is said to be dumped when its export price is less than its normal value of a like product in the domestic market in the exporting country. What is Dumping?

Like products A product is identical - alike in all respects OR A product that has closely resembling characteristics

Normal Value The price in the exporters domestic market, or Production costs plus other expenses and normal profit margins. The Normal Value is

Dumping must cause material injury in the importing market Injury

The Impact Loss of Sales Reduced Profits Loss of market share Reduced returns on investments Decline in Productivity Decline in output Cash flow Employment Wages Growth New Investment Ability to raise capital Adverse Effect On The Impact on the industries of importing country

Remedial Action Restrict Dumping or Using of import duties

Imposition of anti dumping duties Countervailing duties Safeguard measures Measures for Remedial Action

Case Studies Ukraine & Russia Product : Fibreboard Dumping Margin : 31% Injury -Reduced Profits -Reduced Return on Investment -Loss of local Job opportunities

Remedial Action Dumping duty imposed at 31% on top of export price Recommendation of Ukraine Government to return all dumped products back to Russia Duration of antidumping measures is 5 year (till 2014)

Conclusions Only an Industry or Country and not a Company can call for an anti-dumping investigation It is time consuming work to gather information and prove dumping Costly as in most cases the matter will be referred to Industrial courts It is difficult to recover losses during the process of proving Dumping Pre or Post introduction of dumping duties