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Wto Antidumping agreement:

Wto Antidumping agreement Presented By : Virtika Bhatt Gaurav Goswami

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Virtika Bhatt 023


Anti-Dumping Article VI of GATT 1994 A product is said to be dumped when its export price is less than its normal value, that is less than the sale of a like product in the domestic market in the exporting country. WTO decides whether dumping is unfair competition Difference between Normal Value and Export Price: Margin of dumping (% of export price) Price Discrimination Capture new market

WTO and Anti-Dumping Agreement:

WTO and Anti-Dumping Agreement The Agreement governs the application of antidumping measures by Members of the WTO The provisions of the Agreement were first negotiated during the Kennedy Round (1967) of GATT negotiations The Agreement applies to trade in goods only. An anti- dumping application can be file in the form written application by or on behalf of the “Domestic Industry”, who account for more than 25% of total domestic production of the like article .

Anti-Dumping Law in India Legal Framework:

Anti-Dumping Law in India Legal Framework Based on Article VI of GATT 1994 Customs Tariff Act, 1975 - Sec 9A, 9B (as amended in 1995) Anti-Dumping Rules [Customs Tariff (Identification, Assessment and Collection of Anti Dumping Duty on Dumped Articles and for Determination of Injury) Rules,1995] Investigations and Recommendations by Designated Authority, Ministry of Commerce Imposition and Collection by Ministry of Finance

Impact Of Dumping On Indian Economy:

Impact Of Dumping On Indian Economy

Impact of Anti-Dumping Laws:

Impact of Anti-Dumping Laws Pros Prevents Monopolies Protects Vulnerable Industries Allows Firms Compete Preserves Jobs or employment. Cons Against Free Trade Concept Trade Barrier – Lowers Economic Growth Distorts the Market Protects Firms from Competition Hurts Consumers

PowerPoint Presentation:

8 Japan was accused of dumping steel, television sets, and computer chips in the United States, and Europeans of dumping cars, steel and other products. Most industrial nations (especially those of European union) have tendency of persistently dumping surplus agricultural commodities arising from their farm support programs. E x a m p l e

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Gaurav Goswami

Causes of Dumping:

Causes of Dumping Producers in one country are trying to stay competitive with producers in another country. Producers in one country are trying to eliminate the producers in another country and gain a larger share of the world market Producers are trying to get rid of excess stuff that they can't sell in their own country, Producers can make more profit by dividing sales into domestic and foreign markets, then charging each market whatever price the buyers are willing to pay.

Consequences of Dumping:

Consequences of Dumping Affects the financial viability of the domestic manufacturers Job losses and unemployment in the long run Affects trade relations between countries Anti-Dumping rules and imposition of tariffs an quotas

Sectors getting affected:

Sectors in Anti-dumping investigations 1995-2008 % of total anti-dumping cases initiated by India Chemicals 33 Metals 28 Machinery 11 Textiles & Footwear 9 Paper & Wood 6 Agriculture 5 Other 8 Sectors getting affected

E x a m p l e Anti-dumping duty on Poly-Propylene(PP) exported into India:

E x a m p l e Anti-dumping duty on Poly-Propylene(PP) exported into India PP – used as a raw material in a variety of industries including packaging, woven sacks for cement, fertilizers, sugar and various consumer items such as house ware, auto components, pipes, water tanks, furniture, and medical appliances Appeal by Reliance Industries, supported by Haldia Petrochemicals corporation Ltd. (HPCL), the only two producers of PP in the country, against PP imports from Saudi Arabia, Oman and Singapore.

PowerPoint Presentation:

Directorate General of Anti-dumping and Allied Duties (DGAD) has imposed definitive anti-dumping duty of up to USD 323.5 per tone of PP imported from Saudi Arabia, Oman and Singapore. According to the Indian Plastic Federation (IPF), imports from Saudi Arabia, Oman and Singapore have increased only marginally from 5% in 2005-06 to 6% in 2008-09.

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It will lead to a significant price rise of the raw material (PP); in some cases the price may rise to almost double as the amount of duty is almost equivalent to the international market price. most of the units associated with processing industry are small and medium enterprises (SMEs) and there is a fear of hurting them in case of price rise in the domestic market.

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