Competition Law
Anti-dumping applications

Proponents of anti-dumping are concerned with the possibility that dumping is predatory and unfair, both because it is supported by a government and because the exporters involved benefit from non-contestable home markets. The actual existence of such situations is rarely investigated by anti-dumping authorities, however. In Discussion Paper No. 1010, Research Fellow Bernard Hoekman and Petros Mavroidis propose that allegations of dumping first be investigated by the local competition authorities to determine the contestability of the relevant markets. This proposal avoids any need for harmonized competition laws. What would change is that necessary conditions for anti-dumping become findings by the competition authorities that the exporting firm's home market is not contestable, and the conclusion that no remedial action is possible through the application of competition law. While agreement along these lines would be ideally sought in the multilateral (WTO) context, bilateral or regional trade agreements could also be concluded. For example, EU cooperation or association agreements might be extended along the lines proposed.

Antitrust-based Remedies and Dumping in International Trade
Bernard M Hoekman and Petros C Mavroidis


Discussion Paper No. 1010, August 1994 (IT)