What is Dumping?

Explain Dumping.

Dumping is when a product is imported into a country’s market and sold at a price that is lower than the price charged in its own domestic market. This practice can cause serious harm to national production in the importing country. Dumping is generally seen as an unfair trading practice. Article VI of the GATT permits the imposition of special anti-dumping duties against dumped goods, equal to the difference between their export price and their ''fair value'' in the export market, if dumping causes injury in the importing country.

The types of Dumping are:

  • Sporadic dumping,
  • Predatory dumping,
  • Persistent dumping; and
  • Reverse dumping.

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