Baha'a Eddin Al-Armouti

Oct 4, 2021

Dumping is recognized as an unfair trade practice regulated under the World Trade Organization (WTO) Agreement on Anti-Dumping. National laws in WTO member countries, including Jordan, the GCC, and Egypt, align with this agreement to ensure proper governance and enforcement.

Definition and Implications of Dumping

Dumping occurs when an exporting company, such as [Company A], sells its products in a foreign market at a price lower than its normal value, which can cause or threaten to cause material injury to local industries producing similar goods. For instance, [Company A] might sell its widgets in [Country B] at a significantly lower price than the local widget manufacturers, leading to a loss of market share and potential bankruptcy for these local companies. Companies engaging in dumping practices are often dominant and seek to limit or exclude competitors' export markets, distorting the market.

Combatting Dumping: Legal Framework and Procedures

The WTO Anti-Dumping Agreement, a robust legal framework, authorizes member states to implement anti-dumping measures. These measures, designed to protect domestic industries from unfair competition posed by dumped imports, are backed by specific procedural and substantive legal conditions for determining the existence of dumping.

Initiating an Anti-Dumping Investigation

When an industry is affected by dumping, it has the right to file a petition with the competent authority. This authority then conducts a thorough investigation, meticulously verifying data submitted by all involved parties, including exporters, the government of the exporting country, and importers. This rigorous process ensures that the allegations are substantiated and not frivolous, thereby protecting the public interest and consumers from unjust exclusion of competitive companies.

Determination and Imposition of Anti-Dumping Duties

If the investigation results in a positive determination, anti-dumping duties are imposed on the dumped goods. These duties correspond to the dumping margin, the difference between the product's normal value and export price. Typically, these duties last for five years, possibly extending if the dumping conditions persist.

National Laws Governing Anti-Dumping in GCC, Jordan and Egypt

The national laws of various WTO member countries incorporate the provisions of the WTO Anti-Dumping Agreement. Some notable examples include:

Jordan: National Production Protection Law No. 21 of 2004

GCC Countries: The Unified Anti-Dumping, Countervailing, and Safeguards Measure

Egypt: Law No. 161 of 1998 Concerning Protection of the National Economy from the Effects of Harmful Practices in International Trade, along with its Implementing Regulations

These laws, derived from the WTO Anti-Dumping Agreement, are similar in their provisions and enforcement mechanisms.

Anti-dumping legislation across WTO member countries is designed to ensure fair competition and protect domestic industries from the adverse effects of dumped imports. However, these measures are not without their challenges. Critics argue that they can be used as protectionist tools, stifling competition and raising prices for consumers. By adhering to the procedural and substantive conditions outlined in the WTO Anti-Dumping Agreement, these laws play a crucial role in maintaining a balanced international trade environment.

Copyright © 2021, Al Armouti Lawyers & Consultants. All Rights Reserved.
Disclaimer: The information provided here is general and may not apply to any particular matter. It does not constitute legal advice nor is presumed indefinitely up to date. 


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