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
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