April 15

Wto Dumping Agreement

5.2 An application under paragraph 1 contains evidence (a) dumping, b) prejudice within the meaning of Article VI of the 1994 GATT, as interpreted by this agreement, and (c) a causal relationship between dumping imports and alleged harm. A mere allegation, which is not based on relevant evidence, cannot be considered sufficient to meet the requirements of this paragraph. The application contains information that is reasonably available to the complainant on the following: when duty rates were reduced in the period following the original GATT agreement, anti-dumping duties became increasingly numerous and the inadequacy of Article VI in its introduction became increasingly evident. For example, Article VI requires that the harm of material interest be established, but provides no indication of the existence of such harm and deals with the method of determining the existence of dumping only in the most general way. As a result, the GATT contracting parties negotiated more detailed anti-dumping codes. The first code, the Anti-Dumping Agreement, came into force in 1967 following the Kennedy Round. However, the United States never signed the Kennedy Round Code, and as a result the code had little practical importance. The Tokyo Round Code, which came into force in 1980, has taken a leap forward. On the merits, it provided much more information on the determination of dumping and harm than Article VI. It is equally important that it essentially sets out certain procedural and procedural requirements that must be met in the conduct of investigations. Nevertheless, the code has always been only a general framework for countries to follow in the investigation and collection of tariffs. It was also marked by ambiguities on many contentious issues and was limited by the fact that only the 27 parties to the code were related to its requirements. 6.10 As a general rule, the authorities determine an individual dumping margin for each known exporter or producer of the product under investigation.

In cases where the number of exporters, producers, importers or types of products involved is such that it is not feasible, the authorities may limit their verification to an appropriate number of interested parties or products using samples that are statistically valid on the basis of the information the authorities need at the time of selection. , or the largest percentage of the volume of exports from the country concerned, which can reasonably be assessed. The World Trade Organization (WTO) is an international organization that deals with the rules of trade between nations. The WTO also enforces a number of international trade rules, including international anti-dumping regulations. The WTO does not interfere in the activities of dumping companies. Instead, it focuses on how governments can or cannot respond to the practice of dumping. In general, the WTO agreement allows governments to combat dumping “if it causes or threatens to cause significant harm to a historic sector on the territory of a contracting party or if it significantly delays the creation of a domestic industry.” The agreement contains rules for calculating dumping margins. In the normal case, the agreement requires either a comparison of the average normal immigrant value with the average of all comparable export prices, or a comparison of transactions between normal and export prices (Article 2.4.2). Another basis for comparison can be used for targeted dumping, i.e. where there is an export price model that varies considerably from one customer, region or period to period.

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