If that country is a member of the WTO or the EU, it must prove dumping before dreaming of tariffs. These organizations want to ensure that countries do not use anti-dumping duties as a way to sneak into commercial nationalism. The Agreement also lays down specific rules for the adjustment to be made when the normal value is compared with an indication of the export price. In those circumstances, account should be taken of the costs, including customs duties and taxes, incurred between the importation of the product and the resale to the first independent purchaser, as well as the profits incurred. If price comparability has been compromised, the agreement requires that normal value be established at a given level of trade at that of the indication for which the export price can be established, which probably requires correction, i.e. there must be differences between the conditions of sale and the conditions of sale, taxation, quantities, physical characteristics and other evidence of price comparability. 2. 100,000,000,000,000 Balfour`s diagnosis was confirmed by the contemporary statements of many British steelmakers.50 But the cure was never found. No measures were taken to reduce dumping or open up foreign markets from which dumping took place. The immediate cost and turnover disadvantages suffered by UK steel producers as a result of dumping gradually resulted in a loss of competitiveness that would prove irremediable in the coming years. Curiously, there has been little resonance with the growing chorus of criticism of anti-dumping policy.
Apart from a few obscure monographs and articles, little has been published to defend the justification for anti-dumping policy since Professor Jacob Viner, one of the authors of the original U.S. anti-dumping laws, wrote the breakthrough work on the subject in 1923.12 When a company exports a product at a lower price than it normally demands in its own domestic market, it is said that it eliminates the product. Is it unfair competition? Opinions differ, but many governments fight dumping to defend their domestic industry. The WTO agreement is not judged. It focuses on how governments may or may not respond to dumping, it disciplines anti-dumping measures and is often referred to as an anti-dumping agreement. (This focus on the response to dumping alone is contrary to the approach of the Agreement on Subsidies and Countervailing Measures.) The cumulative analysis focuses on the combined consideration of dumped imports from more than one country to determine whether the dumped imports are causing injury to the domestic industry. Since such an analysis will increase the volume of imports whose effects are examined, it is more likely that a positive finding will be made in a case where a cumulative analysis is required. The practice of cumulative analysis has been the subject of much controversy under the Tokyo Round Code and in the negotiations on the agreement.
Article 3(3) of the Agreement lays down the conditions under which a cumulative assessment of the effects of dumped imports from more than one country may be carried out. . . . .