Within the panoply of world trade law, dumping plays a crucial role.1 Gains from the multitrade agreements like General Agreement on Tariff and Trade2 and World Trade Organization3 increased the access to international markets for member countries. The achievement of multinational agreement to open up global trade markets through increased market access and eliminate discrimination among countries has resulted in a widening market for producers. Producers look to not only target their domestic market but also explore new markets overseas. On the other hand, there is misuse of uninhabited access to markets. The multinational and large manufacturers in several countries have begun ‘dumping’ their products in new markets.4 This has resulted in an excess of foreign goods in domestic markets. In technical terms, the said process, called ‘dumping’ of foreign goods, may be injurious to domestic industry, as it seeks to to displace the domestic producers of newly found markets in order to capture the market, leading to unfair practices like ‘dumping.’ Dumping, however, is not the result of predatory motives but of differences in market conditions, exchange rates and legitimate distress circumstances. The whole scenario of dumping revolves around the country’s economic structure. Antidumping measures do exist to regulate such dumping, but still there is exploitation of domestic industry under the veil of international trade. This paper focuses on several such cases in national and international scenario, and it also highlights the drawbacks and failure of the regulatory framework in India.
The purpose of antidumping statutes in India is to prevent loss to domestic industries caused by unfair practices of dumping producers. The United States Congress has enacted unfair trade practices laws to prevent such unfair trade practices from placing domestic producers in jeopardy.5 Fearing dumping of goods with a low price, many developing countries like India have also come up with laws and antidumping duties.
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