A company is said to be dumping when

Article 12 sets forth detailed requirements for public notice by investigating authorities of the initiation of investigations, preliminary and final determinations, and undertakings. The public notice must disclose non-confidential information concerning the parties, the product, the margins of dumping, the facts revealed during the investigation, and the reasons for the determinations made by the authorities, including the reasons for accepting and rejecting relevant arguments or claims made by exporters or importers. These public notice requirements are intended to increase the transparency of determinations, with the hope that this will increase the extent to which determinations are based on fact and solid reasoning.

If a company exports a product at a price lower than the price it normally charges on its own home market, it is said to be “dumping” the product. The WTO Agreement does not regulate the actions of companies engaged in “dumping”. Its focus is on how governments can or cannot react to dumping — it disciplines anti-dumping actions, and it is often called the “Anti-dumping Agreement”.

Dumped products pose a threat to European firms and workers, but do you know how it works? Find out in our quick guide to dumping.

What is dumping?

Dumping is when foreign firms dump products at artificially low prices in the European market. This could be because countries unfairly subsidise products or companies have overproduced and are now selling the products at reduced prices in other markets.

Why is it a bad thing?

Dumping is a form of unfair competition as products are being sold at a price that does not accurately reflects their cost. It is very difficult for European companies to compete with this and in the worst cases can lead to firms closing and workers losing their job.

What is the EU doing to tackle it?

The EU has a number of trade defence instruments that it can use to fight unfair trade practices, which includes anti-dumping legislation.

One way to tackle dumping is to charge anti-dumping duties on these products.

Read more about how it works in our article on the EU’s anti-dumping policy.

       

Dumping poses a threat to global trade ©BELGA/BELPRESS/L.VIDAL  

Briefings 

• Modernising trade defence instruments (May 2018)  

• At a glance: modernising trade defence instruments (May 2018) 

• Protection from dumped and subsidised imports (November 2017) 

• At a glance: protection from dumped and subsidised imports (November 2017)  

Product information 

Ref.:  20180621STO06336 

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What is meant dumping?

the act of throwing something away in a place that is not suitable or allowed by law: waste/radioactive/chemical dumping.

What is dumping and its example?

Dumping usually involves exporting large quantities or offloading a product on a foreign market. For example, if UK businesses started selling apples to the US for less than what they're worth in the US, then US apple producers would have a hard time selling their products to the domestic market.

What is product dumping?

What is Dumping? Dumping occurs when a foreign producer sells a product in the United States at a price that is below that producer's sales price in the country of origin ("home market"), or at a price that is lower than the cost of production.

What is dumping in monopoly market?

When a monopolist sells products at higher price in the home market and lower prices in the international market, it is called dumping. It is a special form of price discrimination in which an organization sells its products at a price that is lower than the original price to get rid of the excess inventory.