Anti-Dumping Policy from a Competition Perspective: An Artificial Shield for National Champions in Open Market What to Do About It?

Following the process of globalization trade policy regimes in most countries have gradually transformed from inward oriented protectionist regimes to more outward and liberal trade regimes. Hence, the dual pressure from trade liberalization on one hand and protection on the other hand forced government of those countries to evolve various “emergency” and “safety valve” protection measures to guard against various contingencies arising out of the liberalization and tariff reduction under the multilateral trade system. Trade remedies, in the form of anti-dumping, anti-subsidy and safeguards measures, have form part of the trade policy of number of countries, both developed and developing. Present study focuses on anti-dumping measures, a trade remedy instrument that is targeted at offsetting unfair competitive practices arising from price discrimination between different geographical markets. Specifically, anti-dumping measures aim to remedy injury by foreign competitors to an importing country’s industry from international price discrimination of dumping.The paper tries to analyze the effects of dumping and anti-dumping measures on international competition. It questions the appropriateness of this trade remedy measures as an instrument of international competition administration, and suggests alternatives and improvements.