What Is an Anti-Dumping Policy?
An anti-dumping policy is a trade measure that governments use to protect domestic industries from foreign competition. It involves imposing tariffs or other restrictions on imported goods that are sold at prices lower than their fair market value in the importing country. The purpose of an anti-dumping policy is to prevent unfair competition and ensure a level playing field for local businesses.
The World Trade Organization (WTO) sets rules governing when countries can impose anti-dumping duties, which must be based on evidence of injury caused by dumped imports. Countries may also take unilateral action against dumping if they believe it has caused material injury to their domestic industry, although this could lead to retaliatory measures from trading partners. Anti-dumping policies have been criticized as protectionist measures that limit free trade and raise consumer prices, but supporters argue they are necessary to protect vulnerable industries from predatory pricing practices by foreign competitors.