Your SlideShare is downloading. ×
0
<ul><li>“ Antidumping law, as practiced today, </li></ul><ul><li>is a witches’ brew of the worst of policy </li></ul><ul><...
<ul><li>What is meant by DUMPING ? </li></ul><ul><li>How is dumping measured ? </li></ul><ul><li>The role of material inju...
Group 3 SIIB AB ADITI MALIK  (01) ANKIT SHARMA  (02) NAVJOT KAUR NAGRA (20) PRADEEP KUMAR  (26) RISHABH SOOD  (29) YOGESH ...
<ul><li>“ Dumping is a situation of international price discrimination, where the  price  of a product when sold to the  i...
<ul><li>As a  short-term predatory pricing strategy  to drive competitors out of the market </li></ul><ul><li>As a result ...
<ul><li>When the price causes or threatens to cause  material   injury  to the domestic industry of the importing country ...
<ul><li>Normal Value:  The comparable price at which the goods under complaint are sold in the domestic market of the expo...
<ul><li>Export price:  The price at which it is exported to the importing country. </li></ul><ul><li>Dumping Margin:  The ...
Exporters Price Normal Value Compare Exporter Price  to Normal Value Normal Value $110.00 Exporter Price $90.00 Difference...
<ul><li>fundamental parameters are determined.  </li></ul><ul><li>Normal domestic selling price of the product or similar ...
<ul><ul><li>Domestic price of exporter > export price </li></ul></ul><ul><ul><li>Dumping = price discrimination between na...
<ul><li>Injury parameters include factors such as: </li></ul><ul><li>Actual or potential decline in sales </li></ul><ul><l...
<ul><li>  NIP is that level of price, which the industry is, expected to have charged under normal circumstances in the ex...
Anti-dumping   (Article VI of GATT 1994)    Group 3 SIIB AB
<ul><li>Based on article VI of GATT, 1994 </li></ul><ul><li>Customs tariff act, 1975 sec 9A, 9B (as amended in 1995) </li>...
<ul><li>Export price and normal value must be compared at he same level of trade, such as at the ex-factory level </li></u...
<ul><li>In the 19 th  century  European Sugar Industries appealed to their respective governments for protection against s...
<ul><li>Subsequently, codes on anti dumping were developed during the  Kennedy Round  (1962-67) and  Tokyo Round  (1973-79...
<ul><li>It  is a measure to rectify the situation arising out of the dumping of goods and its trade distortive effect.  </...
<ul><li>ANTIDUMPING DUTY </li></ul><ul><li>To guard against unfair trade practices </li></ul><ul><li>  trade remedial meas...
<ul><li>If there is dumping but no injury then no duty can be imposed. </li></ul><ul><li>Duty remains in force for 5 years...
<ul><li>Sufficient evidence to the effect that ; </li></ul><ul><li>there is dumping </li></ul><ul><li>there is injury to t...
<ul><li>No anti dumping duty shall be recommended without a finding of this causal relationship. That is to say, </li></ul...
<ul><li>The volume effect of dumping relates to the market share of the domestic industry. </li></ul><ul><li>for price eff...
<ul><li>Against </li></ul><ul><li>Consumers </li></ul><ul><li>Exporters </li></ul><ul><li>Economists </li></ul><ul><li>Reg...
<ul><li>anti dumping duty imposed against that countries, which could go up to the dumping margin. </li></ul><ul><li>may t...
<ul><li>Any exporter whose margin of dumping is less than  2%  of the export price shall be excluded </li></ul><ul><li>Inv...
<ul><li>Rule 5(4) of the Anti Dumping Rules provides for suo-motu initiation of anti dumping proceedings by the Designated...
<ul><li>Should not be less than six months and not more than eighteen months. </li></ul><ul><li>The most desirable period ...
Lodging of complaint Initiation Analysis of complaint Preparation and sending of questionnaires Analysis of questionnaire ...
<ul><li>The application is scrutinized to ensure that it is fully documented  </li></ul><ul><li>provides sufficient eviden...
<ul><li>Designated Authority determines that the application has been made by or on behalf of the Domestic Industry.  </li...
<ul><li>C. Access to Information: </li></ul><ul><li>The Authority provides access to the non-confidential evidence  </li><...
<ul><li>E. </li></ul><ul><li>E. Provisional Duty: </li></ul><ul><li>A provisional duty not exceeding the margin of dumping...
<ul><li>F. </li></ul><ul><li>F. Oral Evidence  </li></ul><ul><li>Interested parties can request the Designated Authority f...
<ul><li>the Designated Authority will inform all interested parties of the essential facts, which form the basis for its d...
<ul><li>Anti-dumping measures taken by WTO members have increased from 129 in 1994 to 208 in 2008; 83%. </li></ul><ul><li>...
Group 3 SIIB AB
Source: WTO Secretariat, Rules Division Anti-dumping Database Group 3 SIIB AB
Source: WTO Secretariat, Rules Division Anti-dumping Database Group 3 SIIB AB
Source: WTO Secretariat, Rules Division Anti-dumping Database Group 3 SIIB AB
Source: WTO Secretariat, Rules Division Anti-dumping Database Group 3 SIIB AB
<ul><li>Developing Countries Use Antidumping more intensely than developed countries.  </li></ul>Group 3 SIIB AB
MEASURES:1 900 Developing 75% Developed 25% Developing 80% Developing 75% Developed 25% Developed 20% Total 500 Total 1 40...
Source: WTO Secretariat, Rules Division Anti-dumping Database Group 3 SIIB AB
Total  1 529 Source: WTO Secretariat, Rules Division Anti-dumping Database Group 3 SIIB AB
Total  1 516 Source: WTO Secretariat, Rules Division Anti-dumping Database Group 3 SIIB AB
Total 55 Source: WTO Secretariat, Rules Division Anti-dumping Database Group 3 SIIB AB
<ul><li>Pros </li></ul><ul><li>Prevents Monopolies </li></ul><ul><li>Protects Vulnerable Industries </li></ul><ul><li>Allo...
Source: WTO Secretariat, Rules Division Anti-dumping Database Group 3 SIIB AB
<ul><li>  </li></ul>Total 33 Source: WTO Secretariat, Rules Division Anti-dumping Database
<ul><li>Unclear concept of “ordinary course of trade”. </li></ul><ul><li>For computation of the normal value complicated c...
Business Standard - 15 December, 2009 Group 3 SIIB AB
<ul><li>  India to impose antidumping duties on some equipment imported from China. </li></ul><ul><li>Chinese companies en...
<ul><li>  Fibrehome Telecommunication Technologies Ltd. will have to pay a duty of 236%, Alcatel-Lucent Shanghai Bell Co. ...
<ul><li>The Indian Shrimp Industry Organizes to Fight the Threat of Anti-Dumping Action </li></ul><ul><li>(CASE STUDY) </l...
<ul><li>The Ad Hoc Shrimp Trade Action Committee (ASTAC), an association of shrimp farmers in eight southern states of the...
<ul><li>  on 21 January 2004 the US Department of Commerce (DOC) announced the initiation of  anti-dumping investigations ...
<ul><li>The Department of Commerce continued with its investigations and gave its preliminary determination on 28 July 200...
<ul><li>The weighted average rate for India is 14.2%,  </li></ul><ul><li>The average rate for  </li></ul><ul><ul><ul><li>C...
<ul><li>  On 26 February 2002, Reggie Dupre, a Louisiana state senator, alleged that tainted farm-raised  Asian shrimp was...
<ul><li>Vietnam , one of the countries identified almost at the beginning of the SSA(South America Shrimp Association) exe...
Source: WTO Secretariat, Rules Division Anti-dumping Database Group 3 SIIB AB
<ul><li>Rokhmin Dahiri,  the Indonesian Maritime and Fisheries Minister , denied allegations that the Indonesian governmen...
<ul><li>The Indian government and the Indian shrimp industry were aware of the threat. </li></ul><ul><li>Arun Jaitley, the...
<ul><li>The six named countries accounted for 74% of shrimp imports in the US market. </li></ul><ul><li>Imports from the s...
<ul><li>The average dockside price for one count size of gulf  shrimp dropped from $6.08 to $3.30 per pound  from 2000 to ...
<ul><li>The anti-dumping investigations against Indian shrimp imports might be  initiated was hinted at during bilateral t...
<ul><li>The United States, traditionally a  buyer of small-sized shrimp from India,  has now  started buying many other va...
<ul><li>Commerce Minister on the possible threat to Indian shrimp exports to the United States, SEAI( Seafood Exporters As...
<ul><li>The SEAI (Sea food export Association of India) has estimated a total budgetary requirement of  Rs. 70 million  to...
<ul><li>First, there are  specific variations between the shrimp caught  off the south-west coast of the United States and...
<ul><li>Second, while fishing in the United States is a  capital-intensive activity  calling for major investment, in Indi...
<ul><li>  Department of Commerce observed that  India had a strong case as India was exporting mainly ‘tiger shrimps which...
<ul><li>Shrimp exports to the United States had come almost to a standstill  due to the uncertainty regarding the  conting...
<ul><li>In  1976 US banned shrimps  ,It was on the ground that trawling for shrimp by  mechanized  means had been adversel...
<ul><li>Several visits by the representatives  of those two bodies  to Washington  at critical points also helped to bring...
<ul><li>The speedy resolution of the issue of financing helped Indian case. </li></ul><ul><li>The  shrimp industry in Indi...
<ul><li>India learnt  the importance of diversification . </li></ul><ul><li>A. J. Tharakan, the  SEAI president , has said...
<ul><li>“ On 27 th Jan exports to US were resumed .” </li></ul><ul><li>Business line newspaper– 1 st   Feb, 2010 </li></ul...
<ul><li>Websites </li></ul><ul><ul><li>www.google.com </li></ul></ul><ul><ul><li>www.e-businessline.com </li></ul></ul><ul...
Group 3 SIIB AB
Upcoming SlideShare
Loading in...5
×

Anti dumping

7,592

Published on

Anti dumping India WTO

0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
7,592
On Slideshare
0
From Embeds
0
Number of Embeds
4
Actions
Shares
0
Downloads
495
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide

Transcript of "Anti dumping"

  1. 1. <ul><li>“ Antidumping law, as practiced today, </li></ul><ul><li>is a witches’ brew of the worst of policy </li></ul><ul><li>making: power politics, bad economics, </li></ul><ul><li>and shameful public administration” </li></ul><ul><ul><li>Finger, J. Michael, </li></ul></ul><ul><ul><li>Editor, </li></ul></ul><ul><ul><li>“ Antidumping How It Works and Who </li></ul></ul><ul><li>Gets Hurt”, </li></ul>Group 3 SIIB AB
  2. 2. <ul><li>What is meant by DUMPING ? </li></ul><ul><li>How is dumping measured ? </li></ul><ul><li>The role of material injury and de-menimis in AD </li></ul><ul><li>The steps in an AD investigation and duty imposition </li></ul><ul><li>A brief history of AD </li></ul><ul><li>Various minuses of the AD measurement laws. </li></ul><ul><li>AD Duties and their IMPACT. </li></ul><ul><li>Increasing use of AD in WTO </li></ul><ul><li>Top 10 users of AD in the world. </li></ul><ul><li>Case study </li></ul><ul><li>And hence make u agree or disagree with </li></ul><ul><li>Finger, J. Michael. </li></ul>Group 3 SIIB AB
  3. 3. Group 3 SIIB AB ADITI MALIK (01) ANKIT SHARMA (02) NAVJOT KAUR NAGRA (20) PRADEEP KUMAR (26) RISHABH SOOD (29) YOGESH SHARMA (37)
  4. 4. <ul><li>“ Dumping is a situation of international price discrimination, where the price of a product when sold to the importing country is less than the price of the same product when sold in the market of the exporting country .” </li></ul>Group 3 SIIB AB
  5. 5. <ul><li>As a short-term predatory pricing strategy to drive competitors out of the market </li></ul><ul><li>As a result of market intervention or state subsidies that enable companies to artificially lower their prices </li></ul>Group 3 SIIB AB
  6. 6. <ul><li>When the price causes or threatens to cause material injury to the domestic industry of the importing country can there be an action against dumping. </li></ul><ul><li>An anti-dumping investigation can be started only if there is a written complaint on behalf of the domestic industry.(a significant share of the domestic producers have to support the complaint). </li></ul>Group 3 SIIB AB
  7. 7. <ul><li>Normal Value: The comparable price at which the goods under complaint are sold in the domestic market of the exporting country. </li></ul><ul><li>Can be determined by: </li></ul><ul><li>domestic sales </li></ul><ul><li>comparable representative export price to an appropriate third country. </li></ul><ul><li>constructed normal value, i.e. the cost of production in the country of origin with reasonable addition for administrative, selling and general costs and reasonable profits. </li></ul>Group 3 SIIB AB
  8. 8. <ul><li>Export price:  The price at which it is exported to the importing country. </li></ul><ul><li>Dumping Margin:  The margin of dumping is the difference between the Normal value and the export price of the goods under complaint. It is generally expressed as a percentage of the export price. </li></ul>Group 3 SIIB AB
  9. 9. Exporters Price Normal Value Compare Exporter Price to Normal Value Normal Value $110.00 Exporter Price $90.00 Difference Attributable to Dumping $20.00 Difference Attributable to Dumping/exporter price $20.00 / $90.00=22.22% Dumping Margin = Group 3 SIIB AB
  10. 10. <ul><li>fundamental parameters are determined. </li></ul><ul><li>Normal domestic selling price of the product or similar products in the exporting country. </li></ul><ul><li>Export price being offered in the importing country. </li></ul><ul><li>Both these elements have to be compared at the same level of trade, generally at ex-factory level, for assessment of dumping. </li></ul>Group 3 SIIB AB
  11. 11. <ul><ul><li>Domestic price of exporter > export price </li></ul></ul><ul><ul><li>Dumping = price discrimination between national markets </li></ul></ul>Group 3 SIIB AB
  12. 12. <ul><li>Injury parameters include factors such as: </li></ul><ul><li>Actual or potential decline in sales </li></ul><ul><li>Loss of profits </li></ul><ul><li>Market share </li></ul><ul><li>Capacity utilization </li></ul><ul><li>Employment </li></ul><ul><li>Wages </li></ul><ul><li>Ability to raise capital </li></ul><ul><li>Lost contracts </li></ul>Group 3 SIIB AB
  13. 13. <ul><li>  NIP is that level of price, which the industry is, expected to have charged under normal circumstances in the exporter market during the period defined. </li></ul><ul><li>The Injury Margin is the difference between the Non-Injurious Price due to the Domestic Industry and the Landed Value of the dumped imports. </li></ul>Group 3 SIIB AB
  14. 14. Anti-dumping (Article VI of GATT 1994)    Group 3 SIIB AB
  15. 15. <ul><li>Based on article VI of GATT, 1994 </li></ul><ul><li>Customs tariff act, 1975 sec 9A, 9B (as amended in 1995) </li></ul><ul><li>Investigations by designated authority, Ministry of Commerce </li></ul><ul><li>Imposition and collection by Ministry of Finance </li></ul>Group 3 SIIB AB
  16. 16. <ul><li>Export price and normal value must be compared at he same level of trade, such as at the ex-factory level </li></ul><ul><li>allowance made for differences that effect price comparability. These are </li></ul><ul><li>Physical characteristics </li></ul><ul><li>Taxation </li></ul><ul><li>Quantities etc.. </li></ul>Group 3 SIIB AB
  17. 17. <ul><li>In the 19 th century European Sugar Industries appealed to their respective governments for protection against sugar being dumped at unfairly low prices. </li></ul><ul><li>In 1902, there was a formal agreement on anti-dumping. Canada adopted the first anti-dumping law in 1904 followed by the European countries and then the US in 1916. </li></ul><ul><li>Formed the basis for the original GATT article (Article VI of GATT) on anti-dumping in 1947. </li></ul>Group 3 SIIB AB
  18. 18. <ul><li>Subsequently, codes on anti dumping were developed during the Kennedy Round (1962-67) and Tokyo Round (1973-79). </li></ul><ul><li>However, these were not binding on all GATT members; they were open to signature by those countries that wished to do so. </li></ul><ul><li>But the Uruguay Round , (1986-94) anti-dumping agreement is an agreement binding on all GATT or WTO members. </li></ul>Group 3 SIIB AB
  19. 19. <ul><li>It is a measure to rectify the situation arising out of the dumping of goods and its trade distortive effect. </li></ul><ul><li>Re-establish fair trade. </li></ul><ul><li>The use of anti dumping measure as an instrument of fair competition is permitted by the WTO. </li></ul><ul><li>It provides relief to the domestic industry against the injury caused by dumping. </li></ul>Group 3 SIIB AB
  20. 20. <ul><li>ANTIDUMPING DUTY </li></ul><ul><li>To guard against unfair trade practices </li></ul><ul><li>  trade remedial measures. </li></ul><ul><li>not necessary in the nature </li></ul><ul><li>levied against exporter / country in as much as they are country specific and exporter specific. </li></ul><ul><li>NORMAL CUSTOMS DUTY </li></ul><ul><li>means of raising revenue and for overall development of the economy. </li></ul><ul><li>trade and fiscal policies of the Government </li></ul><ul><li>Necessary in nature </li></ul><ul><li>universally applicable to all imports irrespective of the country of origin and the exporter. </li></ul>Group 3 SIIB AB
  21. 21. <ul><li>If there is dumping but no injury then no duty can be imposed. </li></ul><ul><li>Duty remains in force for 5 years. </li></ul><ul><li>Re-determination at a “sunset review”. </li></ul><ul><li>Yearly administrative reviews if requested by </li></ul><ul><li>domestic industry or exporter. </li></ul>Group 3 SIIB AB
  22. 22. <ul><li>Sufficient evidence to the effect that ; </li></ul><ul><li>there is dumping </li></ul><ul><li>there is injury to the domestic industry; and </li></ul><ul><li>there is a causal link between the dumping and the injury, that is to say, that the dumped imports have caused the alleged injury. </li></ul>Group 3 SIIB AB
  23. 23. <ul><li>No anti dumping duty shall be recommended without a finding of this causal relationship. That is to say, </li></ul><ul><li>Dumping should lead to Injury </li></ul><ul><li>The causal link is to be established generally in terms of the following effects of dumped imports on domestic industry: - </li></ul><ul><li>volume effect </li></ul><ul><li>price effect </li></ul>Group 3 SIIB AB
  24. 24. <ul><li>The volume effect of dumping relates to the market share of the domestic industry. </li></ul><ul><li>for price effect, significant price under cutting by the dumped imports as compared with the price of the like product in the importer country. </li></ul>Group 3 SIIB AB
  25. 25. <ul><li>Against </li></ul><ul><li>Consumers </li></ul><ul><li>Exporters </li></ul><ul><li>Economists </li></ul><ul><li>Regional Agreements (NAFTA) </li></ul><ul><li>In Favour </li></ul><ul><li>Importing country currently protected industries </li></ul><ul><li>Importing country Labor Unions </li></ul>Group 3 SIIB AB
  26. 26. <ul><li>anti dumping duty imposed against that countries, which could go up to the dumping margin. </li></ul><ul><li>may terminate investigation if the exporter concerned furnished an undertaking to revise his price </li></ul>Group 3 SIIB AB
  27. 27. <ul><li>Any exporter whose margin of dumping is less than 2% of the export price shall be excluded </li></ul><ul><li>Investigation is terminated if the volume of the dumped imports from a particular country accounts for less than 3% of the total imports of the like product. </li></ul><ul><li>The cumulative imports of the like product from all these countries who individually account for less than 3% , should not exceed 7% of the import of the like product. </li></ul>Group 3 SIIB AB
  28. 28. <ul><li>Rule 5(4) of the Anti Dumping Rules provides for suo-motu initiation of anti dumping proceedings by the Designated Authority. </li></ul><ul><li>The Authority can initiate the anti dumping investigation on its own without any complaint/petition filed in this regard </li></ul>Group 3 SIIB AB
  29. 29. <ul><li>Should not be less than six months and not more than eighteen months. </li></ul><ul><li>The most desirable period of investigation is a financial year. (period should be as representative a possible) </li></ul><ul><li>For the purposes of injury analysis, the domestic industry has to furnish the relevant data for the past three years. </li></ul>Group 3 SIIB AB
  30. 30. Lodging of complaint Initiation Analysis of complaint Preparation and sending of questionnaires Analysis of questionnaire responses On-spot verification visits Internal decision + consultation of MS + translation Imposition of provisional measures if warranted and disclosure of decision to interested parties Sending of questionnaires Analysis of disclosure reactions Additional on-spot verification visits if needed Internal decision + consultation of MS + translation Imposition of definitive measures if warranted Final disclosure to interested parties Measures normally imposed for 5 years 45 days 9 months AD 6 months AS 4 months Measures are normally imposed for 5 years Total Duration AS 13 months AD 15 months Group 3 SIIB AB
  31. 31. <ul><li>The application is scrutinized to ensure that it is fully documented </li></ul><ul><li>provides sufficient evidence for initiating an investigation. </li></ul><ul><li>If evidence not adequate, then a deficiency letter is issued. </li></ul><ul><li>Till then cannot be considered as application pending before authority. </li></ul>Group 3 SIIB AB
  32. 32. <ul><li>Designated Authority determines that the application has been made by or on behalf of the Domestic Industry. </li></ul><ul><li>It also examines the accuracy and adequacy of the evidence provided </li></ul><ul><li>The Initiation notice will be issued normally within 5 days from the date of receipt of a properly documented application. </li></ul>Group 3 SIIB AB
  33. 33. <ul><li>C. Access to Information: </li></ul><ul><li>The Authority provides access to the non-confidential evidence </li></ul><ul><li>available for inspection to all interested parties on request after receipt of the responses. </li></ul><ul><li>D. Preliminary Findings: </li></ul><ul><li>The Designated Authority will proceed expeditiously with the conduct of the investigation </li></ul><ul><li>It makes a preliminary finding containing the detailed information on the main reasons behind the determination. </li></ul>Group 3 SIIB AB
  34. 34. <ul><li>E. </li></ul><ul><li>E. Provisional Duty: </li></ul><ul><li>A provisional duty not exceeding the margin of dumping may be imposed by the Central Government on the basis of the preliminary finding </li></ul><ul><li>Can be imposed only after the expiry of 60 days from the date of initiation of investigation. </li></ul><ul><li>The provisional duty will remain in force only for a period not exceeding 6 months, extendable to 9 months under certain circumstances. </li></ul>Group 3 SIIB AB
  35. 35. <ul><li>F. </li></ul><ul><li>F. Oral Evidence </li></ul><ul><li>Interested parties can request the Designated Authority for an opportunity to present the relevant information orally. </li></ul><ul><li>Such information shall be taken into consideration only when it is subsequently reproduced in writing. </li></ul><ul><li>G. Disclosure of information: </li></ul><ul><li>Based on these submissions and evidence gathered the Authority will determine the basis of its final findings. </li></ul>Group 3 SIIB AB
  36. 36. <ul><li>the Designated Authority will inform all interested parties of the essential facts, which form the basis for its decision before the final finding is made. </li></ul><ul><li>H. Final Determination: </li></ul><ul><li>The interested parties submit their response to the disclosure and </li></ul><ul><li>The Authority examines these final submissions of the parties and comes out with final findings. </li></ul>Group 3 SIIB AB
  37. 37. <ul><li>Anti-dumping measures taken by WTO members have increased from 129 in 1994 to 208 in 2008; 83%. </li></ul><ul><li>New users : Argentina, India, Brazil, South Africa. </li></ul><ul><li>Traditional users : Canada, U.S., European Union, Australia, Mexico. </li></ul><ul><li>Most affected industries : Metal, Chemical, plastic, textiles, machinery and equipment, agriculture and food. </li></ul>Group 3 SIIB AB
  38. 38. Group 3 SIIB AB
  39. 39. Source: WTO Secretariat, Rules Division Anti-dumping Database Group 3 SIIB AB
  40. 40. Source: WTO Secretariat, Rules Division Anti-dumping Database Group 3 SIIB AB
  41. 41. Source: WTO Secretariat, Rules Division Anti-dumping Database Group 3 SIIB AB
  42. 42. Source: WTO Secretariat, Rules Division Anti-dumping Database Group 3 SIIB AB
  43. 43. <ul><li>Developing Countries Use Antidumping more intensely than developed countries. </li></ul>Group 3 SIIB AB
  44. 44. MEASURES:1 900 Developing 75% Developed 25% Developing 80% Developing 75% Developed 25% Developed 20% Total 500 Total 1 400 Source: WTO Secretariat, Rules Division Anti-dumping Database Group 3 SIIB AB
  45. 45. Source: WTO Secretariat, Rules Division Anti-dumping Database Group 3 SIIB AB
  46. 46. Total 1 529 Source: WTO Secretariat, Rules Division Anti-dumping Database Group 3 SIIB AB
  47. 47. Total 1 516 Source: WTO Secretariat, Rules Division Anti-dumping Database Group 3 SIIB AB
  48. 48. Total 55 Source: WTO Secretariat, Rules Division Anti-dumping Database Group 3 SIIB AB
  49. 49. <ul><li>Pros </li></ul><ul><li>Prevents Monopolies </li></ul><ul><li>Protects Vulnerable Industries </li></ul><ul><li>Allows Firms to Compete </li></ul><ul><li>Preserves Jobs </li></ul><ul><li>Cons </li></ul><ul><li>Against Free Trade Concept </li></ul><ul><li>Trade Barrier – Lowers Economic Growth </li></ul><ul><li>Distorts the Market </li></ul><ul><li>Protects Firms from Competition </li></ul><ul><li>Hurts Consumers </li></ul>Group 3 SIIB AB
  50. 50. Source: WTO Secretariat, Rules Division Anti-dumping Database Group 3 SIIB AB
  51. 51. <ul><li> </li></ul>Total 33 Source: WTO Secretariat, Rules Division Anti-dumping Database
  52. 52. <ul><li>Unclear concept of “ordinary course of trade”. </li></ul><ul><li>For computation of the normal value complicated cost calculations and allocations </li></ul><ul><li>Arbitrariness steps in especially when there is a conflict between accounting practices in the exporting country and the importing country. </li></ul><ul><li>This is so because investigating authorities typically follow accounting practices of the importing country </li></ul>Group 3 SIIB AB
  53. 53. Business Standard - 15 December, 2009 Group 3 SIIB AB
  54. 54. <ul><li>  India to impose antidumping duties on some equipment imported from China. </li></ul><ul><li>Chinese companies entered the Indian telecom market, offering products and services at prices about a third cheaper than that of global competitors. </li></ul><ul><li>Indian manufacturers hurt as well </li></ul>Group 3 SIIB AB
  55. 55. <ul><li>  Fibrehome Telecommunication Technologies Ltd. will have to pay a duty of 236%, Alcatel-Lucent Shanghai Bell Co. 29% and Israel's ECI Telecom Ltd. 93% on equipment imported from China </li></ul>Group 3 SIIB AB
  56. 56. <ul><li>The Indian Shrimp Industry Organizes to Fight the Threat of Anti-Dumping Action </li></ul><ul><li>(CASE STUDY) </li></ul>Group 3 SIIB AB
  57. 57. <ul><li>The Ad Hoc Shrimp Trade Action Committee (ASTAC), an association of shrimp farmers in eight southern states of the United States, filed an anti-dumping petition against six countries — Brazil, China, Ecuador, India, Thailand and Vietnam.  </li></ul><ul><li>The petition alleged that these countries had dumped their shrimps in the US market. </li></ul>Group 3 SIIB AB
  58. 58. <ul><li>  on 21 January 2004 the US Department of Commerce (DOC) announced the initiation of anti-dumping investigations against the six countries. </li></ul><ul><li>The Department notified the International Trade Commission (ITC) of its decision on initiation. </li></ul><ul><li>On 17 February 2004 the International Trade Commission announced its decision that there was a reasonable indication that the US shrimp industry was affected due to Anti-dumping.  </li></ul>Group 3 SIIB AB
  59. 59. <ul><li>The Department of Commerce continued with its investigations and gave its preliminary determination on 28 July 2004. </li></ul><ul><li>The ratio of preliminary duty varies between 3.56% and 27.49% by the DOC . </li></ul>Group 3 SIIB AB
  60. 60. <ul><li>The weighted average rate for India is 14.2%, </li></ul><ul><li>The average rate for </li></ul><ul><ul><ul><li>China is 49.09%, </li></ul></ul></ul><ul><ul><ul><li>Brazil 36.91%, </li></ul></ul></ul><ul><ul><ul><li>Vietnam 16.01%, </li></ul></ul></ul><ul><ul><ul><li>Ecuador 7.3% </li></ul></ul></ul><ul><ul><ul><li>Thailand 6.39%. </li></ul></ul></ul>Group 3 SIIB AB
  61. 61. <ul><li>  On 26 February 2002, Reggie Dupre, a Louisiana state senator, alleged that tainted farm-raised Asian shrimp was being diverted from Europe and dumped on the US market.  </li></ul>Group 3 SIIB AB
  62. 62. <ul><li>Vietnam , one of the countries identified almost at the beginning of the SSA(South America Shrimp Association) exercises and also highly dependent on the US market for shrimp exports, was the first to protest .  </li></ul><ul><li>  Foreign Ministry spokeperson Phan Thuy Thanh said in a statement on 12 September 2002 that ‘ I can say with certainty that Vietnam has never dumped its shrimp, and its shrimp have been sold at market prices .’  </li></ul>Group 3 SIIB AB
  63. 63. Source: WTO Secretariat, Rules Division Anti-dumping Database Group 3 SIIB AB
  64. 64. <ul><li>Rokhmin Dahiri, the Indonesian Maritime and Fisheries Minister , denied allegations that the Indonesian government subsidized its shrimp farmers. </li></ul><ul><li>He said that the price of shrimp on the domestic market was much lower than the export price . </li></ul><ul><li>“ The dumping charge was baseless and, therefore, the United States should exclude Indonesia from the proposed anti-dumping investigations.  ” </li></ul>Group 3 SIIB AB
  65. 65. <ul><li>The Indian government and the Indian shrimp industry were aware of the threat. </li></ul><ul><li>Arun Jaitley, the then Minister for Commerce, made a statement in June 2003 after his official visit to the United States: ‘We are anticipating an action against our shrimp exports because our share in the US market is on the rise. </li></ul>Group 3 SIIB AB
  66. 66. <ul><li>The six named countries accounted for 74% of shrimp imports in the US market. </li></ul><ul><li>Imports from the six countries increased from 466 million lbs. in 2000 to 650 million lbs in 2002. </li></ul><ul><li>Import prices of the targeted countries had dropped by 28% in the previous three years. </li></ul><ul><li>The average unit value of the targeted countries in 2000 was $3.54; this had fallen to $2.55 in 2002, on a headless, shell-on equivalent basis. </li></ul>Group 3 SIIB AB
  67. 67. <ul><li>The average dockside price for one count size of gulf shrimp dropped from $6.08 to $3.30 per pound from 2000 to 2002. </li></ul><ul><li>The United States was the most open market in the world . </li></ul><ul><li>High tariff rates in other large importing countries provided a powerful incentive for exporters to increase shrimp shipments to the United States. </li></ul>Group 3 SIIB AB
  68. 68. <ul><li>The anti-dumping investigations against Indian shrimp imports might be initiated was hinted at during bilateral talks when the then Commerce and Industry Minister Arun Jaitley had met his counterpart in Washington at that time.  </li></ul><ul><li>The reason given was that India’s shrimp exports to the United States had been rising rapidly during the previous three years, from $255.93 million during 2000-1 to $299.05 million during 2002-3. </li></ul>Group 3 SIIB AB
  69. 69. <ul><li>The United States, traditionally a buyer of small-sized shrimp from India, has now started buying many other varieties , including black tiger shrimp, resulting in its occupying the top slot in India’s export markets of marine products , replacing Japan in 2002-3. </li></ul>Group 3 SIIB AB
  70. 70. <ul><li>Commerce Minister on the possible threat to Indian shrimp exports to the United States, SEAI( Seafood Exporters Association of India (Kochi, Kerala, India). and MPEDA( The Marine Products Export Development Authority) went into action. </li></ul>Group 3 SIIB AB
  71. 71. <ul><li>The SEAI (Sea food export Association of India) 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. </li></ul>Group 3 SIIB AB
  72. 72. <ul><li>First, there are specific variations between the shrimp caught off the south-west coast of the United States and in Indian waters, so that prices are bound to be different. </li></ul><ul><li>India’s shrimp exports are predominantly of black tiger and scampi varieties which are not cultivated in the United States’, according to the president of SEAI. </li></ul>Group 3 SIIB AB
  73. 73. <ul><li>Second, while fishing in the United States is a capital-intensive activity calling for major investment, in India shrimp capture is carried out with a very low level of capital and requiring hardly any investment. </li></ul><ul><li>This makes the cost of production considerably lower in India compared with that for shrimp sea-caught off the US coast. </li></ul>Group 3 SIIB AB
  74. 74. <ul><li>  Department of Commerce observed that India had a strong case as India was exporting mainly ‘tiger shrimps which are not found there and that too, in unprocessed form’. Noting that 80% of shrimp consumption in the United States is met through imports. </li></ul>Group 3 SIIB AB
  75. 75. <ul><li>Shrimp exports to the United States had come almost to a standstill due to the uncertainty regarding the contingent applicability and incidence of the anti-dumping duty. </li></ul>Group 3 SIIB AB
  76. 76. <ul><li>In 1976 US banned shrimps ,It was on the ground that trawling for shrimp by mechanized means had been adversely affecting certain varieties of sea turtles. </li></ul><ul><li>The WTO ruled against the United States and asked it to make the regime WTO-compatible. </li></ul><ul><li>However, since that had not yet happened, India’s exports to the United States of aqua-culture shrimp and shrimp caught by non-mechanized means were being made on the basis of certification by the MPEDA , as required under the law. </li></ul>Group 3 SIIB AB
  77. 77. <ul><li>Several visits by the representatives of those two bodies to Washington at critical points also helped to bring an understanding of the nature of the problem and how to face it.  </li></ul><ul><li>This resulted in the selection and appointment of the legal counsel, in September 2003.  </li></ul>Group 3 SIIB AB
  78. 78. <ul><li>The speedy resolution of the issue of financing helped Indian case. </li></ul><ul><li>The shrimp industry in India shouldn’t have been focused on only one or two major markets for growth. </li></ul><ul><li>Previously it was Japan and during the last few years, it has been the United States . </li></ul>Group 3 SIIB AB
  79. 79. <ul><li>India learnt the importance of diversification . </li></ul><ul><li>A. J. Tharakan, the SEAI president , has said that they are exploring alternative markets to make up for the loss of the lucrative US market. </li></ul><ul><li>‘ But it will be a long drawn-out process. It is not easy to establish your presence.’ </li></ul>Group 3 SIIB AB
  80. 80. <ul><li>“ On 27 th Jan exports to US were resumed .” </li></ul><ul><li>Business line newspaper– 1 st Feb, 2010 </li></ul>Group 3 SIIB AB
  81. 81. <ul><li>Websites </li></ul><ul><ul><li>www.google.com </li></ul></ul><ul><ul><li>www.e-businessline.com </li></ul></ul><ul><ul><li>exim.indiamart.com </li></ul></ul><ul><ul><li>commerce.nic.in/ Anti -Dum.PDF </li></ul></ul><ul><ul><li>www.wto.org/english/tratop_E/adp_e/adp_e.htm </li></ul></ul><ul><ul><li>Texts and literature </li></ul></ul><ul><ul><li>Anti-dumping and countervailing Measures-A detailed study. </li></ul></ul>Group 3 SIIB AB
  82. 82. Group 3 SIIB AB
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×