What is export dumping?

Export dumping refers to the practice of selling goods in a foreign market at a price that is lower than the price charged in the domestic market or the cost of production. The objective of export dumping is to increase market share and drive competitors out of the market, ultimately leading to a dominant market position.

Export dumping is considered a form of unfair trade practice and is prohibited under international trade agreements, such as the World Trade Organization (WTO) Agreement on Anti-Dumping.

Examples of export dumping include:

1. Steel industry: In the past, Chinese steel producers have been accused of exporting steel at prices lower than their domestic market prices, hurting steel producers in other countries and leading to trade disputes.
2. Solar panels: In 2012, the European Union imposed tariffs on imported solar panels from China, alleging that Chinese companies were exporting solar panels at artificially low prices, causing injury to European producers.
3. Seafood industry: In 2019, the US imposed tariffs on imported seafood from Vietnam, alleging that Vietnamese seafood producers were exporting shrimp and catfish at prices lower than the cost of production, causing injury to US producers.
4. Agricultural products: In the past, some developing countries have been accused of exporting agricultural products, such as cotton, at prices lower than their domestic market prices, causing injury to producers in developed countries.

These are just a few examples of the impact of export dumping on various industries. The practice can have significant economic and social consequences, including job losses, declining competitiveness, and reduced trade flows.