LP4 Assignment: Price Dumping This assignment will assess the following competency 3: ANALYZE what makes up International and United States Trade Law. Directions: WRITE a XXXXXXXXXXword response on...

Price Dumping
In plain and simple language Price dumping in International trade means exporting a product in a foreign country at a price much lower than it is sold in foreign country’s domestic market. It has the effect of endangering the financial viability of local manufacturers of product in importing nation. Another term for it is ‘predatory pricing’. World Trade Organization has formed a policy charter which allows countries to take action against the dumping practice under Article 6 of General Agreement on Tariffs and Trade (GATT). The Anti-Dumping Agreement formed under WTO expands and clarifies Article 6 (Willing, 2006). However WTO reserves the right and judgment whether dumping leads to unfair practices and competition, but it is considered legal until the importing nation can prove that it has negative effects on the domestic manufacturers
USA was a non-regulated market in terms of Dumping until 1916, when a specific law was passed by the Congress in regards to dumping. According to the Act (Anti-Dumping of 1916, 15 U.S.C. 71) a predatory intent must be shown by the exporter. The U.S. International Trade Commission (ITC) and The U.S. Department of Commerce are two main governing bodies...