ANTI DUMPING REGULATIONS - A BOON OR BANE
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Abstract
Over the past few years, antidumping duty is being increasingly used as a tool to rectify the market distortions that have resulted from liberalization of international trade. Several newly industrialised countries like Japan, Korea, Taiwan and now China have been accused of dumping their products in the international market with the main objective of ensuring better market penetration so that in the long term, they may realise better margins once their competitors exit the marketplace. Although India hasn’t been too heavily accused of dumping products in the foreign market, it has been subject to heavy dumping from other countries and is in fact the largest user of antidumping measures in the world in terms of absolute numbers of definitive measures imposed. While there can be no clear cut decision on whether antidumping duty on a product brings overall benefits to the economy as a whole, there can be no doubt that excessive use of antidumping duty is bound to be harmful to the economy in the long run.
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