ANTI-DUMPING & COMPETITION LAW

Presented BySameer Gulati2011165

7/24/12

Ravi Saini- 201115

Shankit Agarwal-

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INTRODUCTION

Dumping is a pricing practice where a firm charges a lower price for exporting goods than it does for the same goods sold domestically. Antidumping duties were initiated with the intention of nullifying the effect of the market distortions created due to unfair trade practices adopted by aggressive exports.
22 These laws are remedial and not

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TYPES OF ANTI DUMPING MEASURES

Antidumping duty: This is imposed at the time of imports, in addition to other customs duties. The purpose of antidumping duty is to raise the price of the commodity when introduced in the market of the importing country.

Price undertaking: If the exporter himself undertakes to raise the price of the product then the importing country can consider it and accept it 7/24/12 33

JUSTIFICATION FOR ANTI DUMPING

To bring about parity in a free trade scenario. Protect domestic and infant industries. It is something like the MRTP act at an international level. Arguments both for and against these measures.

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WTO & ANTI DUMPING AGREEMENT...

Anti Dumping includes tariff & non tariff measures. WTO Rules and Article VI of GATT (1994) governs anti dumping investigations. In the last 50 years, average tariff level has fallen from 40% to 3.9% and successful anti dumping cases filed in US alone risen by 25 times.
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ARTICLE VI & ANTI DUMPING AGREEMENT

The Agreement governs the application of antidumping measures by Members of the WTO. The provisions of the Agreement were first negotiated during the Kennedy Round (1967) of GATT negotiations
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RULES FOR THE CONDUCT OF ANTI-DUMPING INVESTIGATIONS The agreement contains the following points

initiation of cases, calculation of dumping margins, application of remedial measures, injury determinations, enforcement, reviews, duration of the measure and dispute settlement.

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ANTI DUMPING LAW IN INDIA

Based on Article VI of GATT 1994 Customs Tariff Act, 1975 - Sec 9A, 9B (as amended in 1995) Anti-Dumping Rules [Customs Tariff (Identification, Assessment and Collection of Anti Dumping Duty on Dumped Articles and for Determination of Injury) Rules,1995] Investigations and Recommendations 7/24/12 88 by Designated Authority, Ministry of

INJURY TO THE DOMESTIC INDUSTRY

The Indian industry must be able to show that dumped imports are causing or are threatening to cause material injury to the Indian domestic industry Injury analysis can broadly be divided in two major areas:
The Volume Effect: The Authority examines the volume of the dumped imports, including the extent 99 which to 7/24/12

WHO CAN FILE AN APPLICATION

A dumping investigation can be initiated only upon receipt of a written application by or on behalf of the Domestic Industry In order to constitute a valid application, there must be support of those who account for more than 25% of total domestic production, 7/24/12 more than 50% production by 1010 and

COMPETITION ACT -2002

An Act to provide, keeping in view of the economic development of the country, for the establishment of a Commission to prevent practices having adverse effect on competition, to promote and sustain competition in markets, to protect the interests of consumers and to ensure freedom of trade carried on by other participants in markets, in 7/24/12 1111 India, and for matters connected

A FEW HIGHLIGHTS OF THIS ACT

The Act provides a very wide mandate for the Competition Commission of India to enforce. The Act contains provisions which have rather become standard in the competition jurisdictions all across the globe.

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ANTI-DUMPING CASES INITIATED BY INDIA No of cases initiated in Country

year 1995-2009 596 440 406 270 212 208 179 178 151 144 108 1313 India United states European Union Argentina South Africa Australia Brazil China Canada turkey Korean Republic 7/24/12

ANTI-DUMPING CASES INITIATED AGAINST INDIA

Country China Korean Republic United States Taipei, Chinese Indonesia Japan Thailand India Russia Brazil Malaysia 7/24/12 No of cases initiated in year 1995-2009 761 264 205 198 156 155 150 145 119 108 97 1414

AFFECTED SECTORS
Sectors in Anti-dumping investigations 1995-2008 Chemicals Metals Machinery Textiles & Footwear Paper & Wood Agriculture Other % of total anti-dumping cases initiated by India 33 28 11 9 6 5 8

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PRACTICAL SCENARIO

PP used as a raw material in a variety of industries including packaging, woven sacks for cement, fertilizers, sugar and various consumer items such as house ware, auto components, pipes, water tanks, furniture, and medical appliances Appeal by Reliance Industries, 7/24/12 1616 supported by Haldia Petrochemicals

CONCLUSION

It can be agreed that overall the antidumping policy of India helps to check unwanted imports and hence might qualify as effective. Do little when it comes to the trade diversion that takes place during the initiation of an anti-dumping case against a certain country. Re-initiation and re-investigation on 7/24/12 potential similar imports1717 the from a

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THANK YOU..!
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