INTRODUCTION

Dumping is, in general, a situation of international price discrimination, where the price of a product when sold to the importing country is less than the price of the same product when sold in the market of the exporting country. It is generally accepted in the multilateral trading system that if dumping takes place, it might result in unfair trade as the domestic industry of the importing country might suffer harm as a result of the dumping. If this is the case, the authorities of the importing country may, if certain requirements are met, take action against dumping. Anti-dumping action can therefore only be taken if dumping is taking place, accompanied by consequent injury to the domestic industry.

The purpose of an anti-dumping investigation is to ascertain whether dumping is taking place and causing injury to the domestic industry of the country importing the allegedly dumped products. In other words, the process focuses on (i) establishing a “normal value” of the product when sold in the domestic market of the exporting country; (ii) establishing the export price of the product; (iii) comparing the export price with the normal value established; and (iv) ascertaining whether the domestic industry of the importing country is suffering injury as a result of the dumped imports. The rules of the multilateral trading system require that anti-dumping investigations be conducted with due cognizance taken of the principles of “due process,” that is, that anti-dumping investigations have to be conducted in a transparent, objective and equitable way, with all interested parties given adequate opportunity to defend their interests.