By Brink Lindsey
Shortly, the U.S. stands on my own in opposing significant reform-an untenable place. during this ebook, the authors clarify how those insidious principles have persevered, and why and the way to advertise a profitable antidumping reform process.
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Extra info for Antidumping Exposed: The Devilish Details of Unfair Trade Law
It is true that international price differences can reveal a sanctuary home market. Likewise, sales below cost, under certain circumstances, can signal the presence of government-caused market distortions. But just because they can does not mean that they usually do. There are many other possible explanations—explanations that rest entirely on normal business practices and have nothing to do with any ‘‘unfair’’ competitive advantage. By ignoring alternative causes of the pricing behavior it targets, the antidumping law routinely punishes foreign firms for normal commercial conduct.
Companies that are going out of business generally leave a trail of red ink on the way out. At other times, losses are only temporary, as companies make mistakes or business conditions deteriorate; companies can get back in the black by correcting errors and riding out the storm. During down periods, it may make good business sense to go on producing at a loss instead of cutting back production. For example, there may be long-term strategic benefits that accompany a certain market position (and market share); staying the market leader through a temporary downturn may maximize long-term profitability.
There are, however, a number of different ways to perform such comparisons—and in particular, a number of different benchmarks for determining normal value. S. prices to ‘‘net’’ home-market prices. To arrive at net values, the DOC subtracts freight charges, brokerage and handling fees, commissions, and various other selling expenses; the idea here is to compare prices on an ‘‘ex-factory’’ basis. S. and homemarket prices is the preferred method of calculating dumping margins. If specified conditions exist, though, the DOC will employ alternative methodologies.