Monday, October 20, 2008
The World Trade Organization is reporting that the number of antidumping investigations increased by 39 percent over the corresponding period for the previous year. Some 16 WTO members initiated 85 new investigations in the first six months of 2008, compared to 61 investigations in the corresponding period last year.
Dumping occurs when a manufacturer in one country exports a product to another country at a price either below the price it charges in the home country market or below its cost of production. There are many reasons why this might happen, but those reasons are largely unimportant. What matters for purposes of the antidumping law is simply the "dumping margin."
The most investigations were into alleged dumping of products in the base metal sector (21 initiations), followed by textiles (20 initiations), and chemicals (10 initiations).
Turkey recorded the highest number of initiations, with 13, followed by the United States, India, Argentina, the European Communities, Brazil, Australia and Colombia.
China was the most frequent subject of new investigations, with 37 – or nearly half the entire total – directed at its exports. Thailand was the subject of 7 investigations, and the European Communities and Indonesia were each the subject of 5 investigations.