By Richard Dale
Antidumping tasks -- legislation and laws.
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Extra info for Anti-Dumping Law in a Liberal Trade Order
For an analysis ofUnited States allegations ofpredatory dumping by Germany at this time, see William A. Wares, The Theory of Dumping and Ameriean Commereial Poliey (Lexington: Lexington Books, 1977) pp. 15-21, where it is concluded that 'to a significant degree, the [US] Anti-dumping Act was founded on fantasy ... the Act was accompanied by the irrational beliefthat dumping was currently rampant and that Europe had accumulated enormous surpluses that would eventually be dumped in the United States.
Basic Instruments, 24th Supplement (Geneva: GA TI Secretariat, 1978) p. 17. Offieial Journal 0/ the European Communities, Luxembourg, 1968, Reg. no. 459/68 L93/1 et seq. The early history of dumping is covered by Viner, op. eit. Basil Yamey, of the London School of Economics, has cited the Mogul Steamship case relating to events in 1885 as an example of successfully concluded predatory pricing. The predator here, however, was a cartel (conference ofshipowners) protecting its existing price ring from outsiders.
The second situation relates to cyclical pricing, where a foreign producer prices his exports du ring recessionary periods at a level equal to short-run marginal cost while maintaining prices at a higher monopolistic level in the domestic market. The objection to cyclical pricing, by contrast to predation, involves much broader considerations than dumping since it sees the establishment of both national and international anti-recession cartels as a remedy. Furthermore, the allegedly damaging consequences of cyclical dumping apply equally to the exports of foreign producers who are subject to vigorous competition in their domestic markets and who are therefore unable to dump.