Anti Dumping

3.2 Association Between Anti-dumping and WTO
In the perspective of Anti-dumping practices, there is nothing inherently illegal or immoral about the practice of dumping. However, where dumping causes or threatens to cause material injury to the domestic industry, the designated authority needs to initiate necessary action for investigations and subsequent imposition of Anti-dumping duties. Thus, Anti-dumping can be fined as a protective device available to countries against vicissitudes associated with the free trade. In the recent past, a large number of countries have become frequent users of Anti-dumping. Many of the heaviest Anti-dumping users are countries that did not even have an anti- dumping statute a decade ago. The traditional users

It is on this view that the revealed economic founding in this paper could not fail to effectively address the legal side of it. Dumping occurs when firms start using price discrimination as a strategy for profit maximisation. This signify the presence of an imperfect market where price discrimination between markets is possible, and presence of segmented markets where there is no arbitrage easily possible between markets. It is only if the two conditions are satisfied when it profitable for the exporting firm to engage in dumping. For any firm, price discrimination in favour of exports is more common because the share of exports is usually lesser than the domestic demand. In the export market, individual firms have lesser monopoly power, and hence they tend to keep prices lower in foreign markets while charging higher prices for domestic markets. Such anomalies can further be explained through the price elasticity of demand for

In line with the thinking in antitrust literature, scholars define economic efficiency in terms of consumer welfare standards. While applying this standard to Anti-dumping remedies, it sounds possible to rule out the protection of domestic producer interests as a primary economic justification for the remedies. There are however, two protection-based justifications for imposing Anti-dumping duties: optimal tariff argument of protection and strategic trade policy argument. While the former emphasises terms of trade gains from protection, the latter is based on externalities generated by some