Antidumping - The discussion concerning the Anti – dumping case of imported shoes from China and Vietnam

Essay by MakuntaUniversity, Bachelor'sB+, April 2007

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Contents1. Introduction12. Definition23. WTO and Dumping34. EU and Dumping44.1 EU and Dumping in general44.2 EU and the Chinese shoe dumping case64.2.1 Voices from Europe64.2.2 Voices from China84.3 Discussion of impacts84.3.1 Price increase84.3.2 Unemployment94.3.3 Reduced choice94.3.4 Further arguments105. Reference111. IntroductionThe press release of the European Commission of October the 5th was short, but the impacts and the story behind the release was more than eminent for Europe, China and Vietnam. On October the 5th the Council adopted a definitive anti dumping duty on imports into the EU of special leather footwear from China and Vietnam starting October the 7th. This measure will be installed for two years. The regulation is aimed at protecting the EU footwear market by imposing duties of16,5% and 10% on leather footwear imports from China and Vietnam, respectively .

Before the installing of the measures the Commission initiated investigations in July 2005. In April provisional anti dumping duties had been adopted.

The following paper will tackle the topic of the anti-dumping measures adopted by the European Commission. First, I will go over the definition of dumping. After this, I will explain the role of the WTO in cases of dumping. In the next chapter I will talk about dumping cases in the EU from China in general. The next part deals with the case of anti dumping, concerning special leather shoes from China and Vietnam. Different voices from Europe and China will be covered, including the discussion of the impacts of the adopted measures.

2. DefinitionIn economics, "dumping" can refer to any kind of predatory pricing, and is by most definitions a form of price discrimination. Dumping in context of international trade law, is defined as the act of a manufacturer in one country exporting a product to another country at an unreasonable low price. This price...