Discuss the concept of “dumping” and "anti-dumping" with respect to international fair trade laws.
What are some measures to resolve this crisis?
Dumping is when a country exports goods to another country at very low prices, lesser than the price of the product in the domestic market. It is considered as an unfair trade practice but it is considered legal under WTO unless it does not affect the domestic traders negatively. Anti-dumping is the measure taken when the practices of dumping effect the trade, economy and domestic market and jobs adversely. It is a tariff imposed on the goods exported at a lesser price to raise them to the fair market price and regulate fair trade. It helps in improving the distortive effect caused by dumping.
The measures taken to solve the crises from dumping are imposing duty taxes, tariffs and other such additional duties to the prices of the products while bringing them in the market These measures are taken based on the situation caused from the dumping practices and are levied by the government after proper investigation.
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