Anti dumping

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Querist : Anonymous (Querist)

11 March 2014 what is anti dumping ?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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11 March 2014 often companies use bulk exports as a mechanism to disrupt the pricing and supply-demand balance in a foreign country.

For eg: If in India, we have demand for 100 units of steel at $ 100 each. Now if China wants to take the Indian Suppliers out, it would start supplying bulk steel lets say at $ 50/60. this would result in crowding of supply side by China and Indian suppliers will be crowded out because of pricing differential.

This is known as dumping (as in dumping of steel!)

anti-dumping measures including anti-dumping duty are used to dissuade the foreign suppliers. Anti-dumping increases the price of imported material and thereby reduce the differential between import and domestic prices, thereby allowing domestic players to compete.

Even quantitative measures can be used. such as fixing the maximum imports allowed etc

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