By Richard Dale
Antidumping tasks -- legislations and laws.
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Extra resources for Anti-Dumping Law in a Liberal Trade Order
41 In this situation the monopolistic horne market may be said to facilitate (though not strictly to subsidise) dumping. 42 Furthermore, dumping of this kind cannot be presumed to be temporary since it reflects profit-maximising behaviour and does not involve actuallosses; accordingly the 'fairness' argument here is in conflict with considerations of economic welfare. In summary, familiar complaints about the unfairness of dumping are frequently misconceived. Nevertheless, there is ample reason to believe that the prevalence of such views has played a major role in formulating anti-dumping policy.
For an analysis ofUnited States allegations ofpredatory dumping by Germany at this time, see William A. Wares, The Theory of Dumping and Ameriean Commereial Poliey (Lexington: Lexington Books, 1977) pp. 15-21, where it is concluded that 'to a significant degree, the [US] Anti-dumping Act was founded on fantasy ... the Act was accompanied by the irrational beliefthat dumping was currently rampant and that Europe had accumulated enormous surpluses that would eventually be dumped in the United States.
64, note l. See p. 122 below. Parliamentary Debates (Hansard), House ofCommons, London, 2 August 1916, col. 336. Jackson, op. , p. 404, note 9. CHAPTER 2 Welfare Implications of Dumping To assess the welfare implications of dumping it is helpful to examine first the welfare aspects of price discrimination within national boundaries and to relate such conclusions as may be drawn to the problem of price discrimination within the international context. Subsequently, it will be useful to compare the welfare effects of dumping in the conventional sense (where the export price is assumed to be below the horne market price) with the opposite form of differential pricing, generally known as reverse dumping.