Anti-dumping Measures, Safeguards

The objectives of the subject “Contingent trade-protective measures (Anti-dumping Measures, safeguards)” are the following:

1. To understand the basics of the Contingent trade-protective measures in international trade;
2. To learn how the anti-dumping, safeguard and compensatory measures (countervailing measures, Export prices undertaking) works;
3. To analyze an anti-dumping investigation process;
4. To know the different types of safeguard measures: safeguard duties, quantitative restrictions, contingents and special levies.

The Subject “Contingent trade-protective measures (Anti-dumping Measures, safeguards)” belongs to the following Online Higher Educational Programs taught by EENI Global Business School:

Courses: Non-tariff Measures, Foreign Trade Management.

Diploma: Foreign Trade.

Masters (MIB): International Business, Foreign Trade, International Transport.

Doctorate (DIB): World Trade.

Learning materials in: Medidas antidumping Anti-dumping Antidumping.

Area of Knowledge: Foreign trade.

Trade Facilitation - Trade Facilitation Agreement (TFA) - Revised Kyoto Convention - International Convention on the Harmonization of Frontier Controls of Goods (UNECE).

Contingent trade-protective measures.

The Non-tariff Technical Measures related to Foreign Trade protection are implemented by the States, to counteract a particular adverse or negative effects of imports in the importing market.

Anti-dumping Measures

In foreign trade, the Dumping refers to those cases in which a good is imported in a country at a less price than its normal value (for example, in the local market, or even below the production price).

All those non-tariff foreign trade protection measures designed to avoid dumping are called anti-dumping measures.

The most common anti-dumping measures implemented by the Governments are:

1. Anti-dumping duties (applied on the import price of the dumped product);
2. Export prices undertaking by exporters (to avoid the payment of the anti-dumping duties).

When a domestic producer detects a dumping practice, it must be communicated to the authorities of its country, to initiate the anti-dumping investigation process.

The provisional anti-dumping duties may be applied in the investigation phase.

Countervailing Measures

In certain sectors, the Government of the country of the exporter may have granted certain subsidies that affect the real price of a good, and therefore could cause negative effects to a manufacturer in the country of the importer.

To avoid this situation, the countervailing measures are applied:

1. Countervailing duties;
2. Undertakings by exporters.

Safeguard Measures - WTO Agreement on Safeguards (SG)

The application of a safeguard measure by a country implies the temporary suspension of the multilateral concessions (World Trade Organization), as long as a series of conditions are met.

The country of the importer must conduct an investigation and demonstrate that the increase in imports of that product could be a threat to the local manufacturers.

The safeguard measures can be:

1. Safeguard duty;
2. Safeguard quantitative restriction;
3. Special levies;
4. Tariff-rate quotas;
5. Special safeguard measures for the agriculture.

Related information:

1. Agreement on Preshipment Inspection;
2. WTO Agreement on Technical Barriers to Trade (TBT);
3. Customs and the World Trade Organization.

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