Dumping

Dumping refers to a business practice in which a foreign company sells its products into the domestic market at a lower price than it sells in its home market, sometimes called “less than fair value” (LTFV), and causes substantial injury to the domestic producers.

For example, a Chinese company might sell a bolt of cloth in the United States for U.S.$3 and the same cloth in China for the equivalent of U.S.$5 causing U.S. producers to lose money or go out of business. This practice is sometimes deemed to be unfair by national trade authorities and brings the remedy of antidumping duties that are assessed on those products. National dumping laws are in accord with the World Trade Organization's (WTO) Anti-Dumping Agreement (General Agreement on ...