Anti-Dumping

Dumping is said to occur when a company exports goods at a price that is lower than what it would normally charge in its home market. This is considered an unfair trade practice and it can have a distortive effect on global trade. Measures taken to rectify the distortive trade affect that is caused by dumping are called anti-dumping measures. Countries can impose anti-dumping duties in order to reinstate fair trade. Anti-dumping measures are an instrument of fair trade and its use is permitted by the World Trade Organisation (WTO). It is hence, not a protectionist policy for the domestic industry. It actually offers relief to domestic players against the ill-effects of dumping.