Dumping refers to the commercial practice of selling a product in another country below its cost of production, with the aim of undercutting local competitors and gaining control of the foreign market. This practice is prohibited under international trade agreements. The document discusses how cheaper imported onions from Peru were dumping in the Ecuadorian market, undercutting local onion farmers. It suggests steps Ecuador could take to counter dumping, such as imposing import taxes, better border control, and having policies to quickly restrict surges in imported goods.

1. Dumping
The commercial practice of sale of a product
below his price and even worse below his cost of
production, with the immediate aim to withdraw
progressively competitors and sooner or later the
market to interfere in. " This practice is prohibited
as " the General Agreement on Rates and Trade "

2. HYPOTHETICAL EXAMPLE OF ECUADOR
• FEW MONTHS IN THE YEAR THE
ONION IS EXPENSIVE IN ECUADOR
• THE ONION OF PERU IS CHEAPER
THAN THE PRODUCED ONE IN OUR
COUNTRY
• IMPORTED THE ONION IS MUCH
CHEAPER THAN PRODUCED IN
ECUADOR

3. THIS ONE IS OUR DUTY?
 THE DOLLAR LIKE NATIONAL CURRENCY IS MORE ATTRACTIVE FOR OUR
NEIGHBORING COUNTRIES PERU AND COLOMBIA TO DO BUSINESS IN DOLLARS
FOR THE TYPE OF CHANGE MONETARY.
 THE ONION IN THE MARKET OF PERU ALSO WAS CHEAP BECAUSE
YOUR MINOR COSTS OF PRODUCTION

4.  IN PERU THERE WAS A OVERPRODUCTION OF ONION

5.  CAN SAY THIS IS UNFAIR COMPETITION

6. What we must do to counter
reduce this problem?
 FIRST THE MAGAP MUST BE PENDING SUCH SUDDEN CHANGES IN PRICES
AND IMMEDIATELY PROHIBIT THE ENTRY OF PRODUCTS IN THIS CASE THE
ONION

7.  BETTER CONTROL THE SMUGGLING IN THE BORDER.
 IMPOSE MORE PRODUCTS IMPORT TAXES TO
THREAT OF DUMPING

8. CONCLUSIONS
While this trend exists on the commercial market,
and the governments do not have clear policies to
control it, the problem for the farmers was
continuing
 It needs that the governmental authorities and
the entities of government are prepared well, to
prevent this type of problems from happening
often, and to know clearly the action plans to
execute to reduce his impact in the economy of a
country

9. THANK YOU FOR YOUR
ATTENTION