Chapter 3: Section II: injury and causality analysis
2. Section I: dumping A WTO Member is entitled to impose anti-dumping duties in a case where it can be demonstrated through an investigation initiated and conducted in accordance with the provisions of the AD Agreement that dumped imports are causing injury to the domestic industry producing the like product. A demonstration that imports were dumped is thus a first essential and necessary condition for the imposition of any anti-dumping measure. Both GATT Article VI.1 and the AD Agreement (Article 2.1) define dumping as the introduction of a product into the commerce of another country at less than its normal value. In what follows we will examine the various provisions of the AD Agreement dealing with the establishment of (a) normal value, (b) the subject product’s export price and (c) the comparison between the two which allows a WTO Member to determine what, if any, the margin of dumping is. A NORMAL VALUE (NV) The normal value of the imported product under examination, generally referred to as the ‘subject product’ is the comparable price for the like product sold in the ordinary course of trade, destined for consumption in the exporting country.1 When there are (1) no sales of the like product in the exporting country, (2) no sales in the ordinary course of trade or (3) not sufficient volume of sales to allow for a proper comparison,2 the authorities are 1 Article 2.1 AD Agreement; Article VI.1 (a) GATT 1994. We will come back to these terms ‘comparable...
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