what's the anti-dumping duty

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what's the anti-dumping duty

An anti-dumping duty is a protectionisttariff that a domestic government imposes on foreign imports that it believesare priced below fair market value.

In order to protect their respectiveeconomy, many countries impose duties on products they believe are being dumpedin their national market; this is done with the rationale that these productshave the potential to undercut local businesses and the local economy.

While the intention of anti-dumping dutiesis to save domestic jobs, these tariffs can also lead to higher prices fordomestic consumers.

In the long-term, anti-dumping duties canreduce the international competition of domestic companies producing similargoods.

The World Trade Organization (WTO)–aninternational organization that deals with the rulesof trade between nations–also operates a set of international traderules, including the international regulation of anti-dumping measures.