Law of the Trade organisation (WTO): Dumping Issues with International Trade - Essay Example

ere products are exported and sold at a rate that is far less than the “normal value,” and this decreased rate is, more often than not, purported as the sale price in the home country, in simple words it means that the price of the product when sold in the importing country is far lower, than when the same product is sold in the exporting country It is an accepted fact in the world of multilateral trade, that dumping might prove to be detrimental to the economic scenario of the importing country.

If faced with such a scenario, then the importing country may find it imperative to take actions, and it can file a case against dumping, with the international trade monitoring body, the World Trade Organisation or WTO. Thus, for the anti-dumping provisions to start their operations, it is necessary that first dumping has to take place, and then it must be shown this dumping has proven to be harmful for the economy of the complainant country (Czako, Human, & Jorge, 2003, 1). A look at some previous cases will show us that Nike, the well known maker of sportswear, was accused of the ‘dumping’ in 1996-1997, when it was held accountable for exploiting labour standards that were poor and abusive (like long hours of working, with minimal basic wages), in various Asian like countries, like Vietnam, China, and Indonesia (Connor, and Atkinson, 1996).

In another instance, GAP, a famous garment manufacturing business house, was accused of dumping in 2007, when it came into light that GAP Inc., was using child labour, under un-safe and unhealthy working conditions, with very poor wages, in countries like Lesotho, Bangladesh, Mexico and Indonesia (Bagwell and Staiger, 1999). Dumping issues have frequently caused frictions in the world of international trade and relations, and it is for this very reason that the body General Agreement on Tariffs and Trade (GATT) right from the time of its origin, has commissioned various certifiers to apply duties to offset dumping when the