Anti-dumping: selected economic issues

Anti-dumping: selected economic issues
Document type
Paper
Corporate author(s)
Great Britain. Dept. for Business, Innovation and Skills; Great Britain. Dept. for International Development
Publisher
BIS
Date of publication
11 May 2012
Series
Trade and Investment Analytical Papers: Topic 18 of 18
Subject(s)
Trends: economic, social and technology trends affecting business
Collection
Business and management
Material type
Reports

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This report discusses EU anti-dumping policy and practice, and its limitations. Trade Defence measures take the form of Anti-dumping (AD) and Anti-subsidy (AS) measures - both aimed at tackling “unfair trade” - and Safeguards, aimed at providing relief from the impact of fair trade. In the EU, most trade defence measures take the form of Anti-dumping measures.
Although AD affects a relatively small proportion of trade directly, trade figures alone tend to understate its importance. For producers, consumers and exporters involved, AD investigations and the resulting measures can have profound effects and so tend to be controversial.
By the standards of some other countries that impose AD measures, the EU is a fairly restrained user in terms of the number of cases, and the size and duration of measures. Partly this reflects the fact that the EU Regulation is more liberal than is strictly required by WTO law. Despite this, a number of aspects of the conduct of EU AD policy has come in for much criticism. These include the fact that investigations do not distinguish between the various types of pricing behaviour which give rise to dumping, difficulties in isolating the role of dumping in causing injury to the domestic industries and the failure to take full account of all economic interests in assessing the impact of measures. Across a range of these issues, the available economic evidence tends to support the criticisms; shortcomings in the approach to AD cases inflict costs on the EU economic interests, as well as on overseas exporters. In short, the evidence suggests that there is a case for reform.

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