Bridges Weekly Trade News Digest • Volume 12 • Number 35 • 23rd October 2008

Anti-Dumping Cases on the Rise in the First Half of 2008, WTO Reports

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The Secretariat of the WTO reported this week that there was an increase in the number of anti-dumping investigations initiated during the first six months of 2008, as compared with the same period in 2007. The number of new anti-dumping measures applied also rose over these time periods, although to a lesser extent, the Secretariat reported.

Altogether the cases initiated on dumping - the practice of selling goods more cheaply overseas than in the producer country’s home market - increased by 39 percent over the period of 1 January to 30 June 2008 in comparison with the first half of 2007. Sixteen WTO Members reported initiating a total of 85 new investigations in the first half of 2008, compared with the 61 investigations that were launched in the corresponding 2007 period.

While Turkey, the US and India initiated the greatest number of new cases, launching 13, 12 and 11 new anti-dumping investigations respectively in the early half of 2008, China remained the most frequent target of the new investigations, with 37 - nearly one half - of the new cases directed at its exports. Notably this represents a 75-percent increase from the corresponding period in 2007. Thailand, with seven new investigations, and the EU and Indonesia, with five each, were the second- and third-most-frequent targets of new anti-dumping probes.

Products in the base metals (21 initiations), textiles (20 initiations) and chemicals sectors (10 initiations) were the most common subjects to the new investigations.

The report also tracked the number of times that Members took measures to counter the effects of other countries’ dumping practices - a practice permitted under WTO rules. Such anti-dumping measures, which usually come in the form of punitive tariffs against the offending country, also were on the rise in the first half of this year.

From January to June 2008 the number of new anti-dumping actions rose by six percent. Altogether, 12 Members applied 54 new final measures against unfairly priced imports during the first half of 2008 compared with 51 new measures reported by 17 Members for the corresponding period in 2007.

In particular, India, with 16, initiated the greatest number of new measures. The European Communities reported eight new measures and Indonesia reported five.

Products exported from China were also the most common target of new anti-dumping measures, accounting for 13 of the 54 new measures. But this represented a 40-percent decline from the 22 new measures applied on Chinese exports during the first half of 2007. Exports from Taiwan were the second-most frequent target, followed by the EU, Korea, Russia and the US with four each.

Dumped goods from the chemical sector were the most frequent target of anti-dumping measures, accounting for 16 of the 54 measures reported from January to June 2008.

But in comparison with the latter half of 2007 - the period immediately preceding that reported - the number of new anti-dumping investigations and new measures actually fell (see BRIDGES Weekly, 16 July 2008, http://ictsd.net/i/news/bridgesweekly/12780/). Overall, 101 new investigations and 58 new measures were reported in the final six months of 2007, compared to the 85 new investigations and 54 new measures in early 2008.

The imposition of anti-dumping duties is one way that the WTO allows its Members to protect their local industries. Thus, it will be interesting to see whether the next report by the Secretariat, which will cover the tumultuous latter half of 2008, will document an increase in anti-dumping measures. WTO Director-General Pascal Lamy has repeatedly urged countries to resist protectionist tendencies despite the turmoil in world markets.

The Secretariat’s report is based on WTO Members’ semi-annual submissions to the Anti-Dumping Practices Committee.

For further information, please refer to: http://www.wto.org/english/news_e/pres08_e/pr542_e.htm.

ICTSD reporting.