Countervailing and safeguard anti-dumping measures are trade policy instruments, established under the WTO agreement, which are intended to temporarily protect a domestic industry suffering from import damage.
WTO agreements lay down basic rules on investigation procedures and the application of rights contained in each country's national legislation.
Anti-dumping measures apply only to targeted imported products and dumping that causes or threatens to also cause injury to domestic production after determining, on the basis of an investigation initiated and conducted in accordance with the provisions anti-dumping agreement.
Under the WTO framework, dumping is generally a situation of international price discrimination, i.e. when the price of a product is sold in the importing country and is lower than the price at which that product is sold on the market of the country exports Dor. Therefore, if an enterprise exports a product at a lower price than it normally applies in the market in its own country, dumping is said.
Dumping margin determination
In order to determine this, price comparisons are made in two markets. In some cases it is necessary to undertake a series of complex analyses to determine the appropriate market price of the exporting country (normal value) and the appropriate market price of the importing country (export price) in order to be able to carry out a adequate comparison. Normal value can be calculated on the basis of: household prices and prices of a third export market.
Countervailing measures are applied to counteract only specific subsidies (subsidies offered only to an enterprise or industry or a group of enterprises or industries within the jurisdiction of the granting authority) granted directly or indirectly in the country of origin to the manufacture, production or export of any product where this causes or threatens to also cause injury to domestic production.
A grant is an economic contribution granted by the government or a public body (including commissioning from a private entity one or more functions that would normally be the matter of the government) that confers a benefit on a recipient and is also considered a unfair practice to trade.
Safeguard measures are extraordinary defence measures that should only be taken in emergencies. Safeguarding consists of the temporary restriction or limitation of imports of a product that has increased in such a quantity and causes or threatens to cause serious injury to the domestic industry that produces like products or directly Competitors. That is, they are measures imposed by a country when it does not manage circulating. Safeguard measures unlike anti-dumping measures and countervailing measures do not require a determination of unfair practice.