The document outlines the concept of anti-dumping as a measure to combat international price discrimination where products are sold at lower prices in the importing country than their domestic market. It discusses the reasons for dumping, its effects on local industries, and the legal framework governing anti-dumping measures, including historical context. Anti-dumping duties are imposed to protect domestic industries from unfair competition, exemplified by India's recent action against Chinese telecom equipment imports.

1. Anti-Dumping

2. Dumping
• “ 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 . Dumping
typically involves substantial export volumes of
a product, it often endangers the financial
viability of the product's manufacturers or
producers in the importing nation.”

3. Why does dumping takes place
• As a short-term predatory pricing strategy to
drive competitors out of the market.
• As a result of market intervention or state
subsidies that enable companies to artificially
lower their prices

4. Most Affected Sectors

5. What is Injury?
Injury parameters include factors such as:
• Actual or potential decline in sales
• Loss of profits
• Market share
• Capacity utilization
• Increases unemployment
• Wages
• Ability to raise capital

7. Legal framework
• Based on article VI of GATT, 1994
• Customs tariff act, 1975 sec 9A, 9B (as
amended in 1995)
• Investigations by designated authority,
Ministry of Commerce
• Imposition and collection by Ministry of
Finance

8. How did it all begin?
• In the 19th century European Sugar Industries appealed to
their respective governments for protection against sugar
being dumped at unfairly low prices.
• 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.
• Formed the basis for the original GATT article (Article VI of
GATT) on anti-dumping in 1947.

9. What is anti-dumping?
• It is a measure to rectify the situation arising
out of the dumping of goods and its trade
distortive effect
• Re-establish fair trade.
• The use of anti dumping measure as an
instrument of fair competition is permitted by
the WTO.
• It provides relief to the domestic industry
against the injury caused by dumping.

10. Anti-dumping duty
• Anti-dumping duty is a tariff imposed on imports
manufactured in overseas countries and that are priced
below the fair market value of similar goods in the
domestic market.
• The government imposes anti-dumping duty on
foreign imports when it believes that the goods are
being dumped in the domestic market.
• Anti-dumping duty is imposed to protect local
businesses and markets from unfair competition by
foreign imports.

11. “India to levy antidumping
duty
on China telecom gear”-
Business standard – 15 December ,
2009

12. India to impose antidumping duties on some
equipment imported from China.
Chinese companies entered the Indian
telecom market, offering products and
services at prices about a third cheaper than
that of global competitors.
Indian manufacturers hurt as well .

14. Thank you