The history of anti-dumping actions dates back many decades ago when Canada for the first time took such an action. In due course the practice was followed by many other countries namely Australia, the Grat Britain and the USA. When the General Agreement on Tariffs and Trade (GATT) was drafted, it included provisions for imposing company specific anti-dumping duties against price discrimination in import trade.
Substantial tariff reduction commitments have been undertaken in the Uruguay Round. By the end of the implementation period, tariffs on industrial products in the developed countries would come down from a trade-weighted average of 6.3% to 3.9%. Similarly,through Article X1 of the GATT 1994 it has been ensured that no prohibitions or restrictions, other than duties, taxes or other charges ( in accordance with Article II of the GATT, 1994) are made effective whether through quotas, import or export license or other measures.
Thus, a comparatively much freer-market access has been ensured through the successive Rounds of Trade Negotiations, culminating in the Urguay Rounds of Trade Negotiations, culminating in the Urguay Round. But with this, there has also been a fear of domestic markets being swamped by the dumped goods, subsidized goods or by a sudden surge of imports as a result os some unforeseen developments, causing material injury to the domestic industry. These situations are taken care of by the Agreement on Implementation of Article VI of the GATT, Agreement on Subsides and Countervailing Measures and the Agreement on Safeguards respectively. These Agreements although are relatively lesser known but they have a great bearing on the multilateral trading system.
Today, anti dumping measures are looked upon as one of the most effective trade measures through which interests of domestic industry can be protected in certain specific circumstances. The number of anti dumping investigations being initiated...