Anti dumping agreement Article 4 of GATT AD Agreement ( 18 articles of AD agreement)

WTO

ADA
, The WTO agreement does not pass judgement on national policies. Its focus is on how governments can or cannot react to dumping it disciplines anti-dumping actions, and it is often called the AntiDumping Agreement.

Anti dumping agreement of WTO

Main article 1:that there are dumped imports, material injury to a domestic industry, and a causal link has to be established between the dumped imports and the injury. Only then anti dumping measures or agreement apply. Determination of dumping act: it is a pricing practice engaged in by business enterprises and under Article 2, there should be a fair comparison ( Nv in exp country) -EP ( val in importing country), Article 2

continued
Article 3 is Causal link of dumped imports and material injury, has to be established no causal link no investigations or appication of antidumping agreement

Some exemptions
A new provision requires the immediate termination of an anti-dumping investigation in cases where the authorities determine that the margin of dumping is de minimis (which is defined as less than 2 per cent, expressed as a percentage of the export price of the product) or (generally when the volume of dumped imports from an individual country accounts for less than 3 per cent of the imports of the product in question into the importing country).

ADA continued
Article 4 of the AD Agreement sets forth a definition of the domestic industry to be considered for purposes of assessing injury and causation. The domestic industry is defined as producers of a like product or identical prod or having a resembling characterstics

investigation
The AD investigation has to be transparent and to be revealed at all stages ( Article 12) Article 5 specifies that investigations shall be completed within one year, and in no case more than 18 months, after initiation. Article 7 relates to the imposition of provisional measures. includes the requirement that authorities make a preliminary affirmative determination of dumping, injury, and causality before applying provisional measures, Article 8 authorises WTO to revise prices

AD agreement
Article 9 to 12 deals with decision on a lesser duty amount required to remove injury of the concerned party Article 11 deals with duration and termination of the anti dumping measure applicable Article 18 Members are required to notify their antidumping laws and regulations to the Committee ( ADP Committee) to avoid national differences The Ministerial Decision on Anti-Circumvention recognized the desirability of applying uniform rules in this area as soon as possible,

Case shrimp turtle industry

US vs six countries, US objected to turtle destruction in the net catch not using TED Indias marine products industry has been one of the major export success stories. From an export base of just Rs. 450 million in 1971-2, it increased to Rs. 68,810 million in 2002-3. Shrimp is the mainstay of Indias marine product exports. This Legal battle costed 3 million Shrimps being dumped into states

retaliation
Regarding the extremely damaging potential of the proposed anti-dumping action, the SEAI pointed out to its members that in July 2003 the United States had imposed anti-dumping duty ranging from 44% to 63% on catfish fillet imports from Vietnam which would remain in force for five years and is deciding action against India too The case still lingered as US wanted action against India too

Case continued
The SEAI has estimated a total budgetary requirement of Rs. 70 million to fight the case. Of this, SEAI would mobilize Rs. 40 million internally and the remaining Rs 30 million would be collected from its members, depending on the volume and value of their individual exports to the US market. it was said that unprocessed Indian shrimps generated about 1 million jobs in the US food processing industry, therefore, any action against Indian shrimp would adversely affect

Shrimp case effects

No export orders from US The price per kilogramme of white shrimps, Rs. 280 a few months previously, had crashed to Rs. 100 in April, while the price per kilogramme of another variety of prawn had fallen from Rs. 80 to Rs. 40.

Shrimp case decision

The US lost the case, not because it sought to protect the environment but because it discriminated between WTO members. It provided countries in the western hemisphere mainly in the Caribbean technical and financial assistance and longer transition periods for their fishermen to start using turtle-excluder devices. It did not give the same advantages, however, to the four Asian countries (India, Malaysia, Pakistan and Thailand) that filed the complaint with the WTO.