Anti-dumping actions on the rise

It’s a mark of industrial development (no, really)—or perhaps of the development of their political economies—that the charge is now being led by the emerging industrial giants (India, China, Brazil) whose exports are also the most anti-dumped. Tit-for-tat protection? Perhaps. But if that were so, then China would be taking a much bigger lead on anti-dumping actions than it has so far; it is certainly the hardest-hit (click thumbnail image).

In reality dumping is a rational, competitive commercial strategy. Anti-dumping is an effective strategy too, although anti-competitive. Protectionism is measured in this case not by anti-dumping investigations but by the willingness of governments to impose anti-dumping penalty duties, in effect on their own consumers, that are often many times higher than bound tariff rates.

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