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There are many ways to calculate whether a particular product is eliminated strongly or easily. The agreement limits the range of options available. It proposes three methods for calculating the “normal value” of a product. The main one is based on the price in the exporter`s domestic market. If it is not possible to use it, there are two alternatives: the price charged by the exporter in another country or a calculation based on the combination of the exporter`s cost of production, other expenses and normal profit margins. The agreement also sets out the terms of a fair comparison between the export price and the normal price. 6.7 In order to verify the information transmitted or to obtain further details, the authorities may, if necessary, carry out investigations on the territory of other members, provided that the companies concerned are obtained and informed by the representatives of the government of the member concerned, and unless that member objects to the investigation. The procedures described in Schedule I apply to investigations carried out on the territory of other Members. Subject to the obligation to protect confidential information, the authorities make the results of these investigations available to the companies to which they belong, or transmit them in accordance with paragraph 9, and may make it available to applicants.

Legal definitions are more precise, but overall, the WTO agreement allows governments to combat dumping where there is real (“substantial”) harm to competing domestic industry. To do so, the government must demonstrate dumping, calculate the extent of dumping (how much the export price is less than the exporter`s export price) and demonstrate that dumping causes or threatens to cause harm. The agreement stipulates that Member States must immediately and in detail inform the Anti-Dumping Committee of all provisional and definitive anti-dumping measures. You must also report on all investigations twice a year. If there are differences, members are encouraged to consult with each other. They can also apply the WTO dispute settlement procedure. When a company exports a product at a lower price than it normally charges in its own domestic market or sells at a price that does not meet its total cost of production, the product is called dumping. It is one of the various forms of price discrimination and is considered third-degree price discrimination. Opinions differ as to whether or not such a practice constitutes unfair competition, but many governments are fighting dumping to protect domestic industry.

[3] The WTO agreement is not being tried. It focuses on how governments may or may not respond to dumping – it disciplines anti-dumping measures, and it is often referred to as the “anti-dumping agreement.” (The focus is solely on the response to dumping, contrary to the approach of the Subsidies and Countervailing Measures Agreement. 6.12 Authorities offer industrial users of the product under investigation and representative consumer organizations the opportunity to provide useful information to the dumping, harm and causation investigation in cases where the product is usually sold at the retail level.

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