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Legal definitions are more precise, but overall, the WTO agreement allows governments to combat dumping in cases of actual (“essential”) injury to the competing domestic industry. To this end, the government must demonstrate dumping, calculate the magnitude of dumping (how much lower the export price than the exporter`s domestic price) and demonstrate that the dumping is causing or causing injury. 6.7 In order to verify the information transmitted or to obtain other clarifications, the authorities of the territory of other Members may, where appropriate, conduct investigations, provided that they obtain the agreement of the undertakings concerned and inform the government representatives of the Member concerned and do not oppose the investigation. The procedures set out in Annex I shall apply to investigations carried out in the territory of other Members. Subject to the obligation to protect confidential information, the authorities shall communicate or transmit the results of such investigations to the undertakings to which they belong, in accordance with paragraph 9, and may make those results available to applicants. There are many different ways to calculate whether a particular product is strongly or slightly disposed of. The agreement limits the range of possible options. It proposes three methods for calculating the `normal value` of a product. The main one is based on the exporter`s domestic price.

If this cannot be used, there are two alternatives: the price that the exporter calculates in another country, or a calculation based on the combination of the exporter`s costs of production, other expenses and normal margins. The agreement also sets out how to make a fair comparison between the export price and what would be a normal price. When an enterprise exports a product at a price lower than the price it normally charges on its own domestic market or at a price that does not fully meet its costs of production, the product is considered “dumping”. It is one of the various forms of price discrimination and is classified as third-degree price discrimination. Opinions differ on whether or not such a practice constitutes unfair competition, but many governments are taking anti-dumping measures to protect domestic industry. [3] The WTO agreement is not judged. It focuses on how governments may or may not respond to dumping – it disciplines anti-dumping measures and is often referred to as an “anti-dumping agreement”. (This concentration on the response to dumping alone is contrary to the approach of the Agreement on Subsidies and Countervailing Measures.) The Agreement stipulates that Member States must immediately and in detail inform the Committee on Anti-Dumping Practices of all provisional and definitive anti-dumping measures. They must also report on all investigations twice a year.

In case of disagreement, members are encouraged to consult with each other. You can also use the WTO dispute settlement procedure. Article 11 lays down the duration of anti-dumping duties and lays down the conditions for a periodic review of the continuing need to impose anti-dumping duties or price obligations. These requirements respond to concerns expressed by some countries about the indefinitely application of anti-dumping duties. The sunset requirement requires that dumping duties generally cease no later than five years after their first application, unless a review before that date concludes that the expiry of the duty would likely result in the continuation or recurrence of dumping and injury. . . .

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