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Definition: Anti-Dumping

A term used in international trade, it refers to special duties and other border measures imposed by a government on imported goods determined by that government to have met two conditions: (1) the goods have been sold below “normal value” and (2) sales of the goods have injured domestic producers. World Trade Organization agreements govern the application of anti-dumping measures by its member governments. According to these agreements, a product is considered to be “dumped” or sold below normal value when it is introduced into the commerce of another country if the export price of the product is less than the comparable price for the same product in the exporting country. If there are no sales of the product in the exporting country, third-country sales or constructed values may be used to determine the home market price. Injury to domestic producers is determined based upon three factors: (1) the volume of dumped imports; (2) their effect on prices of like products in the export market; and (3) their impact on the producers in the export market.

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The GLG Industry Dictionary
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