Anti-dumping Measure
An anti-dumping measure is a trade policy tool used by a country's government to prevent a foreign company from selling products at an unfairly low price. This practice, known as dumping, occurs when an exporter sells a product in another country for less than its normal value, often defined as the price in its home market.
When dumping is found to cause material injury to the importing country's domestic industry, the government can impose an anti-dumping duty.
This is an extra duty levied on the product, calculated as the gap between its selling price in the foreign market and its standard value. The primary goal of this measure is to protect the domestic industry and ensure fair competition.
Anti-dumping measures are recognized and permitted under the WTO Agreement as a legitimate way to counter unfair trade practices and safeguard a country's industries from harm.