The World Trade Organization (WTO) is an international organization that deals with the rules of trade between nations. The WTO also enforces a number of international trade rules, including international anti-dumping regulations. The WTO does not interfere in the activities of dumping companies. Instead, it focuses on how governments can or cannot respond to the practice of dumping. In general, the WTO agreement allows governments to combat dumping “if it causes or threatens to cause significant harm to a historic sector on the territory of a contracting party or if it significantly delays the creation of a domestic industry.” When tariffs were reduced in the period following the initial GATT agreement, anti-dumping duties were increasingly introduced and the inadequacy of Article VI to frame their introduction became increasingly evident. For example, Article VI requires that the harm of material interest be established, but provides no indication of the existence of such harm and deals with the method of determining the existence of dumping only in the most general way. As a result, the GATT contracting parties negotiated more detailed anti-dumping codes. The first code, the Anti-Dumping Agreement, came into force in 1967 following the Kennedy Round. However, the United States never signed the Kennedy Round Code, and as a result the code had little practical importance. The Tokyo Round Code, which came into force in 1980, has taken a leap forward. On the merits, it provided much more information on the determination of dumping and harm than Article VI. It is equally important that it essentially sets out certain procedural and procedural requirements that must be met in the conduct of investigations. Nevertheless, the code has always been only a general framework for countries to follow in the investigation and collection of tariffs.
It was also marked by ambiguities on many contentious issues and was limited by the fact that only the 27 parties to the code were related to its requirements. Dumping is generally international price discrimination, in which the price of a product sold in the import country is less than the price of that product in the exporting country`s market. Thus, in the simplest cases, dumping is simply identified by comparing prices in two markets. However, the situation is rare, if it is so simple, and in most cases it is necessary to take a series of complex analytical measures to determine the reasonable price in the exporting country`s market (known as normal value) and the reasonable price in the import country market (known as export prices) in order to make a reasonable comparison. An important decision must be made at the earliest in any investigation to determine the similar national product. The agreement defines the similar product as a product in all respects identical to the product concerned, that is, in the absence of such a product, another product which, although not the same in all respects, has characteristics very similar to those of the product concerned. The first step is to examine the imported product or products allegedly dumped, and then to determine which domestically manufactured products or products are the appropriate products. The decision on the similar product is important because it forms the basis for determining the companies that make up the domestic industry, and this provision in turn governs the scope of the investigation and the determination of harm and causation.