Dumping and Antidumping in the United States: A Comprehensive Review of Key Issues
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by
Anh Le Tran
References
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Tharakan, P. (Ed.). (1991). Policy Implications of Antidumping Measures. Amsterdam: Elsevier Science Publishers B.V. Notes Note 1. The law requires that for antidumping duties to be levied against foreign producers/exporters, two conditions must be met: (1) the DOC must find dumping and (2) the ITC must determine that this dumping has caused (or threaten to cause) material injury on the domestic producers.
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Note 2. See the United States Code, Title 15, Section 72 (15 USC 72).
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Note 3. For detailed and official definitions of these terms, see the Import Administration Antidumping Manual available at: http://ia.ita.doc.gov/admanual/ Note 4. Under the weak-201 approach, which is similar to the approach used to determine material injury in section-201 cases but at a much less stringent standard, the ITC will rule affirmative if (a) the domestic industry is in poor health (the material injury test) and (b) if this declining in health is due to, among other things, the significant presence of imports (the cause test).
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The trend analysis approach is similar to the weak-201 approach, it also first seeks to determine material injury to the domestic industry and then seeks to connect this injury to imports. However, in the trend analysis, there is explicit effort to directly link the trends caused by imports to injury. Among these trends include import penetration, decrease in import prices, increase in import market share, decrease in domestic sales, etc. The margins analysis directly measures the effect of dumping on material injury. In so doing, it seeks to compare the dumping margin (the difference between exporter's home market price and exporter's export price) and the underselling margin (the difference between the U.S. domestic price and the import price in the U.S. market). If the dumping margin (e.g., $10) is bigger than the underselling margin (e.g., $5), then dumping does indeed cause material injury, because if there were no dumping, the import price would have been $5 more expensive than the domestic price. Since the $10 dumping margin makes the import price become less expensive than the domestic
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