Antidumping
While antidumping doesn\'t get a lot of press, it is certainly one of the biggest
issues that the WTO is dealing with today. During the recent WTO Ministerial

Conference in Seattle, much was mage about protesters who were demanding higher
environmental standards or international labor standards. Little was mentioned
about antidumping. However, In the midst of the many demonstrators there were
steel workers and members of other union organizations like the AFL-CIO who were
there to defend US antidumping laws. Antidumping regulation was a major issue
for Seattle as it is for the organization of the WTO in general. From the
inception of the WTO, there has been controversy over antidumping laws from
diverse groups. Some countries feel that other countries place antidumping
measures on products that have not really been dumped. Since the 1994 Uruguay

Round, many developing nations feel that they have been unfairly targeted for
antidumping penalties by the industrialized nations. Countries such as Japan and

South Korea have also called for reforms. The US, being the largest economy in
the world tends to be on the receiving end of much of this controversy about its
national antidumping laws. Adding to the confusion, not many cases brought to
the WTO panels have been settled as of yet. There are many complaints about
antidumping procedures, and some economic graphs can be used to demonstrate
these complaints about antidumping and the WTO\'s antidumping laws. In 1995, the

World Trade Organization was born out of the Uruguay Round of trade talks. The

WTO has upwards of 123 member countries and new members are always in the
process of joining. The WTO is an organization that basically a more formal
extension of the GATT (General Agreement on Tariffs and Trade) which had existed
for around 50 years. However, the WTO agreements also cover trade issues not in
the GATT agreement, such as trade in services and intellectual property rights.

Also, WTO member countries must agree to all the obligations of its agreements.

The WTO also features binding panel resolutions. Countries must accept the panel
rulings; under GATT that was not necessarily true. Still, WTO embodies the same
spirit as GATT. It favors trade liberalization and globalization over trade
barriers. In particular, one main objective of the WTO is to reduce trade
restrictions, and one of the first agreements it reached was a general reduction
in tariffs. (Schott, 1). For all of the WTO\'s promise to tear down of trade
barriers, there is some concern that antidumping procedures are a covert way of
hanging on to some of these practices. Since the WTO has come into existence,
antidumping cases have flourished. Between January 1994 and July 1995 there were

238 new provisional or actual antidumping measures were enforced by 19 WTO
members (Schott, 221). Most came from countries such as the United States,

Australia, Canada and the countries of the European Union. Under the WTO

Antidumping Agreement, dumping is generally defined as selling a product in an
export market at a lower price than the product is sold in the exporter\'s home
country. It is also associated with selling the product at less than the
marginal cost of production. This action is often called predatory pricing. The
dumping company keeps its price so low that it drives its competition out of
business so it gains monopoly power after a time. A company is able to do this
in the long run because after a time it only has to cover its average variable
cost, once it covers its overhead expenses. Antidumping is the practice where
governments place tariffs or quotas or duties on imported goods that they
believe are being dumping in their in order to prevent their domestic industries
from collapsing due to the importer\'s unfair pricing. Examples of goods that
often affected by antidumping measures are steel, computer screens and
supercomputers, and agriculture. If in fact a domestic industry is indeed having
competing products being dumped in its country, it is possible that it could be
injured. The lower price imports could decrease the amount of domestic products
purchased, and domestic companies may not be able to lower their prices in order
to compete with these imports. Thus, antidumping procedures may be prudent in
these cases. Antidumping can be a necessary measure for countries to enforce in
certain cases. However, this paper focuses with the problems of antidumping. One
particular issue is whether or not countries are using the valid methods (by the

WTO\'s standards) to determine the presence of antidumping. Since this is such a
controversial issue, this paper often examines the results if there are
antidumping measures placed on products that