GATT procedures unlikely to succeed in lifting antidumping
\nactions<\/p>\n
JAKARTA (JP): The GATT (General Agreement on Tariffs and
\nTrade) dispute settlement process is unlikely to provide
\ndiscipline against the increasing number of antidumping
\nrestrictions against imports, a noted economist says.<\/p>\n
Michael Finger, a leading economist on trade policy from the
\nWorld Bank, told a meeting at the Center for Strategic and
\nInternational Studies (CSIS) here on Monday said that
\nantidumping, which he defined as a preferred means of restricting
\nimports through certain protectionist measures, has shown a sharp
\nincrease within the last five years.<\/p>\n
Dumping laws were originally created to prevent a foreign
\ncompany from selling their product below cost, \"dumping\" their
\nproduct on a market, in an effort to shut down local,
\ncompetitors.<\/p>\n
\"Only one case was challenged as illegal within the first 40
\nyears of the GATT but within the period of 1985 to 1992, more
\nthan 1,000 antidumping cases have occurred,\" he said when he
\npresented the findings of his studies on antidumping contained in
\nhis book entitled Antidumping: How It Works and Who Gets Hurt.<\/p>\n
\"Through the early 1960's, GATT member countries undertook
\nfewer than a dozen antidumping actions per year. However, by the
\nlatter half of the 1970's, the U.S. alone averaged 35 cases per
\nyear and now the frequency across all GATT member countries is
\nmore than 200 per year,\" Finger said.<\/p>\n
He said the country with the highest number of antidumping
\ninitiations between 1985 and 1992 were the U.S., Australia,
\nMexico, the European Community (EC) and Canada.<\/p>\n
Misuse<\/p>\n
Based on his studies, Finger concluded that several conditions
\nhave resulted in the increased, and apparent, misuse of
\nantidumping measures.<\/p>\n
This includes the fact that national regulations allow
\nantidumping action that the investigation process itself tends to
\ncurb imports.<\/p>\n
\"Apart from that, almost half of antidumping actions are
\nsuperseded by negotiated export restrictions before they come to
\na formal, legal ending,\" he said.<\/p>\n
Finger explained that if a GATT member country accuses another
\nmember country of violating legal GATT regulations, the \"victim\"
\nmay present the evidence and request for consultation from GATT.<\/p>\n
\"Either one may bring the dispute to a three-member panel of
\nGATT, which can conclude whether or not the action is a violation
\nof the GATT rules,\" he said.<\/p>\n
He added that recommendations from the panel can then be
\nreported to the GATT membership, which will decide whether or not
\nto object to the case.<\/p>\n
\"The panel's reports have so far never reached the level of a
\nGATT decision, thus none of the antidumping actions have
\nsuccessfully been lifted,\" he said.<\/p>\n
However, since 1989, 15 national antidumping actions have
\nbecome the subject of GATT dispute settlement procedures. \"The
\nappointed panels have completed the findings and recommendations
\nof five of these,\" Finger explained.<\/p>\n
According to him, antidumping investigations included inquiry
\non the existence of dumping actions, injuries -- in which
\ndomestic products were displaced by unreasonably priced imports
\n-- and a reasonable causal link between the facts and the
\ndumping.<\/p>\n
\"The measures also include the comparison between home market
\nand export prices and between export prices and estimate of
\ncosts. To measure injury, the indicators include domestic output,
\nemployment, profits and capacity utilization,\" Finger explained.<\/p>\n
Counterparts<\/p>\n
Mari Pangestu, a noted economist from CSIS, told reporters
\nthat the key to avoid antidumping measures in developing
\ncountries was to seek as many counterparts as possible.<\/p>\n
\"Mr. Finger seems very pessimistic that GATT can settle these
\ndisputes. And with the signing of the Uruguay Round, the number
\nof antidumping measures are likely to increase,\" she said.<\/p>\n
She said it was unrealistic to think that developing countries
\ncould ever win against large economies like the U.S. and the EC.<\/p>\n
\"The U.S., for example, can initiate an antidumping action
\nonly by providing evidence that domestic producers suffer from
\nimports,\" she said.<\/p>\n
Thus, she said, since the procedures to file against and to
\ndefend oneself from antidumping were very expensive and time-
\nconsuming, the countries accused of dumping should instead seek
\npublic support overseas.<\/p>\n
\"If we find the right public support -- who in this case are
\nconsumers or users of our product -- who can claim that they will
\nsuffer if they do not receive our product, the implementation of
\nan antidumping measure can be prevented,\" she said. (10)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/gatt-procedures-unlikely-to-succeed-in-lifting-antidumping-1447899208",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}