Dumping and Anti-Dumping

Dumping and Anti-Dumping The anti-dumping rules and provisions on subsidies have enabled contracting countries trade effectively especially with regards to exports and imports of sub-standard market products/goods while on the other hand ensuring that high utility goods are availed at a considerable price. This blog gives a basis for the rules in GATT and its effect on key areas of production among the contracting member states. Reasons for Dumping One of them is in a bid to find a market for the products; this especially happens when the monopolist industry is trying to establish itself in the foreign market. Due to competition, it opts to sell its products at a lower price, so that the demand of its products may increase. The second reason is the expansion of the industry. This is especially aimed at the sale of surplus products at the foreign market. By selling the products at a low price in the foreign market, the monopolist earns profits The third reason is to find new trade ...