Download Anti-Dumping Law in a Liberal Trade Order by Richard Dale PDF

By Richard Dale

Antidumping tasks -- legislation and laws.

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Extra resources for Anti-Dumping Law in a Liberal Trade Order

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This is no mere quibble since, as will be seen below, the commonly-accepted objection to dumping hinges on the adjustment costs involved in moving domestic resources from one productive use to another. Viner's purpose in citing Smart is to demonstrate that the benefit of periodically cheap imports to the consumer is outweighed by the Welfare Jmp/ications of Dumping 29 detriment to the producer and his employees of periodically enforced idling. Ifthe domestic producer is forced to idle his plant, however, this must mean that his short-run marginal cost is above the price of the dumped imports, while ifwe assume that the foreign exporter is a profitmaximiser/loss-minimiser then his export price must be at or above his own short-run marginal cost.

The changes in the United States law were accomplished by repealing the Antidumping Act of 1921 and amending the Tariff Act of 1930 to include the new anti-dumping provisions as Title VII, Subtitle B, of the amended Act. ' No attempt will be made here to outline the early history of dumping practices (a task which has been amply fulfilled elsewhere),33 but the paradox which emerges from any such study is that there are few authenticated examples ofpredatory dumping and none, it would seem, of such dumping being carried through to its intended conclusion-that is, to the point of eliminating domestic competition and substituting a monopolistic pricing regime.

30 The last proposition, together with the related observation that ' ... the evidence strongly supports the conclusion that dumping is likely to be practised only temporarily, or at least intermittently'/l appears to be somewhat flimsily based in that there has been no thorough empirical investigation of the duration of dumping. Moreover, conditions have changed since Viner undertook his study, and there are sound reasons to suppose that in the steel industry, at least, domestic oligopolistic pricing is liable to give rise to almost continuous dumping.

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