I.

Introduction
II. Anti-dumping policy
III. Anti-dumping measure
IV. Some cases of anti-dumping disputes
V. Conclusion

I. INTRODUCTION
There are three trade remedies instruments:
- Anti-dumping measures
- Countervailing measures
- Safeguard measures
The objectives of these measures are to enable fair trade in order to sustain domestic products, retain
and create Jobs and promote international competitiveness.

Dumping is a type of international price discrimination. A product is to be considered as being

dumped if such product is sold under its normal value in the importing country in comparison with
normal price of such product in the exporting country market (According to Article 2.1 of the General
Agreement on Tariffs and Trade (GATT) 1994)

Dumping is not prohibited if such sales constitute less than 5 percent of the sales of the product under
consideration to the importing. But dumping can be condemned if it causes or threatens material
injury to an established industry.
Ex:
Dumping occurs when a product of Country X that is sold in X’s market with A Price, and such
product is also sold in market of Country Y with B Price, and B lower than A in ordinary course of
trade.

Product a -> country X - A price (A > B)

1.1 ANTI-DUMPING POLICY

Before taking anti-dumping measure: investigation according to pre-existing legislation, properly
notified to WTO
- Determination must be made that:
1. There is dumping
2. Domestic Industry producing the like product in the importing country is suffering injury
( material injury)
3. Causal link between dumping and injury

- Permissible anti-dumping measure after determined have dumping:

1. Provisional measure
2. Price undertaking
3. Definitive anti-dumping measures
II. IMPACT OF ANTIDUMPING (2 phút)
Overall, anti-dumping policies have both positive and negative impacts.
The intention of anti-dumping policies is to save domestic jobs and products . However, these tariffs
can also lead to higher prices for domestic consumers. And, in the long-term, anti-dumping policies
can reduce the international competition of domestic companies producing similar goods.

III. Anti-dumping measures

A. The measures applied to combat dumping in international trade:

In international trade, when goods are deemed to be dumped, they may be subject to anti-dumping
measures, such as anti-dumping duties, deposits or guarantees, quantitative restrictions, or price
adjustments by the exporting country to eliminate the risk of injury to the domestic industry in the
importing country, with anti-dumping duties being the most common measure applied today.

The general principle set forth in the WTO Agreement is non-discrimination in the application of anti-
dumping duties, which means that if the dumped goods are exported from different countries with the
same margin of dumping, equal anti-dumping duties will be imposed.

Under the WTO provisions and the laws of many countries, anti-dumping duties are only imposed
when the dumped goods cause significant harm or threaten to cause significant harm to the industry in
the importing country.
Not every instance of foreign products being sold at a dumping price allows the importing country to
apply anti-dumping measures to those products. According to WTO regulations, the imposition of
anti-dumping measures can only be carried out if the competent authority of the importing country,
after conducting an anti-dumping investigation, concludes the simultaneous existence of all three of
the following conditions:

• The imported goods are being dumped (with a margin of dumping not less than 2%);
• The domestic industry producing the like product in the importing country is experiencing
significant injury or is being threatened with significant injury or is significantly impeded in its
establishment (generally referred to as the "injury" factor);
• There is a causal link between the dumping and injury.
How is the margin of dumping calculated?
https://mof.gov.vn/webcenter/portal/ttpltc/pages_r/l/chi-tiet-tin-ttpltc?dDocName=BTC337377

The margin of dumping is calculated according to the following formula:

Margin of dumping = (Normal value - Export price) / Export price

Where:
Normal value is the price of the product concerned that is sold at the home market of the exporter
under investigation or in an appropriate third country in the ordinary course of trade, or constructed in
a reasonable method by the investigating authorities.

The “ normal value” could be defined as the “ comparable price, in the ordinary course of trade, for
the like product when destined for consumption in the exporting country”.

There are four conditions which may be employed to calculate the normal value:
+ The sale must be “ in the ordinary course of trade”
+ It must be of the “ like product”
+ The product must be “ destined for consumption in the exporting country”
+ The Price must be “ comparable”

Export price: is the price under the contract between the foreign exporter and the importer (or the price
charged to the first independent buyer).

C. The positive consequences of applying anti-dumping measures:

The application of anti-dumping measures not only protects domestic industries from unfair
competition but also plays a crucial role in maintaining stability and fairness in international trade.
These measures also create favorable conditions for investment and sustainable development in the
global economy.

IV. Some cases of anti-dumping disputes

- On February 1, 2010, the Government of Vietnam sent a request for consultation to the US
Government regarding anti dumping measures for frozen warm water shrimp products
imported from Vietnam. Specifically, in the dispute, Vietnam complained about issues related
to the Zeroing method in calculating anti-dumping margins and the method of determining tax
rates.
=> Result: On July 11, 2011, the panel issued a report announcing that Vietnam had won the
case and requiring the US to adjust relevant measures in accordance with WTO regulations.
Another significant dispute:
- Since 1998, Vietnamese catfish has been especially popular with consumers in the United
States due to its delicious quality and low price. That has become a threat to the US catfish
farming and processing industry. Under increasingly strong competition from Vietnamese
catfish products, CFA had to take action to knock Vietnamese fish out of the US market.
Specifically, on June 28, 2002, the US Department of Commerce (DOC) initiated an anti-
dumping investigation for catfish exported from Vietnam.
=> Result: Decision to impose official anti-dumping tax on Vietnam from August 12, 2003,
with final tax rate from 36.84 - 63.88% and effective for 5 years.

Challenge
Dumping does not always lead to the imposition of dumping measures. As per regulations set by the
WTO and various countries, anti-dumping duties are only applied when dumped goods have the
potential to cause harm or pose a significant threat to the manufacturing sector in the importing nation.
Therefore if a product is found to be dumped but does not result in damage, to the domestic industry
producing that particular item there will be no imposition of anti dumping taxes or other related
measures.

To determine whether goods are dumped or not, whether dumping causes significant damage to the
domestic industry or not, to impose anti-dumping measures is the most important and most
complicated thing. During the dumping investigation process. In different countries, different
authorities will carry investigations out. The WTO Anti-Dumping Agreement requires a written
request from the domestic industry or its representative for an investigation to take place. The petition
will be considered qualified to represent the domestic industry if manufacturers support it, accounting
for at least 50% of the total output of the like product produced. However, an investigation shall not
be initiated if the manufacturers expressing support for the investigation account for less than 25% of
the total output of the like product produced by the domestic industry.

The EU, the US, and some other countries show through their dumping investigation process that
determining the normal value of goods as a basis for determining the dumping margin is too
complicated and sometimes difficult. Not transparent, there are still many a.
Different agencies working on anti-dumping cases can slow down the investigation and judgment
process. Because only one side does it, it can affect trade and economic relations.

V. In conclusion:
Anti-dumping is a powerful tool that countries are using as a card to protect domestic production and
ensure fair trade. The report discusses different aspects of anti-dumping, such as its importance,
causes, measures, and global and Vietnamese perspective.

Recommendations:
Pay more attention to anti-dumping laws because this is the strongest, most effective and most popular
measure. It is important to promptly prevent and find suitable solutions by increasing inspections and
reviews.

Introducing anti-dumping tax on imports to counteract damage from dumped goods and keep
competition fair.

In fact, there are also cases where importing countries abuse anti-dumping taxes to protect domestic
industries. The WTO's ADP Agreement provides guidelines for investigating and applying anti-
dumping taxes in trade, to address cases of abuse.

The priority is for countries to establish and enhance trade defense and anti-dumping laws promptly,
following regulations and standards.