Understanding Antidumping regulations under international law...
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Dumping is a term used for one country exporting too much at a lower price than what the product sells for?in another country. Some exporters use dumping as a way to compete with sellers in the importing country. This becomes a matter of price discrimination. A country cannot afford to have another exporter to ruin its domestic markets if there are anti-dumping laws in trade.
The US has had very specific anti-dumping trade laws for at least 80 years. It was believed that antidumping was an absurd part under U.S. trade policy, and very little economic research was done on it until 1982. Today the laws and remedies for dumping are a huge part of? international trade law.?
?The practice of dumping is illegal by WTO and International Trade Association, because it shows a negative effect mainly on domestic producers. Predatory dumping is anti-competitive and can lead to a monopoly in certain industries. In the US, the Federal Trade Commission started investigating Amazon.? As the titan of the 21st century in e-commerce, with a huge marketing platform, a logistics and delivery network, a payment service, credit lender, auction house, book publisher, etc. it is expanding quickly around the world. Its marketing strategy is to position itself at the center of e-commerce and gain a? significant infrastructure for a host of other businesses which are dependent? on it.?
AMAZON is alleged to have unusually high prices for merchants who sell on the platform. This has caught the eye of the international trade community and they have started to accuse the giant of being anti-competitive. This inquiry also includes the Federal Trade Commission (the FTC) . It has both antitrust and consumer protection mandates and is looking at both ends. It has been said that coerces merchants into agreements into keeping prices artificially high, knowing full-well that they can’t afford to say no.
Amazon agreed to pay Washington state $2.25 million and enter into a “shutter program. “Seattle also accused Amazon of violating antitrust laws through agreements with sellers that guaranteed Amazon a minimum margin. Now California has sued Amazon in state court in San Francisco for breaking state competition laws. The lawsuit claims that the titan keeps prices artificially high and bars wholesalers and other merchants from offering lower prices.
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The process of globalization has played a vital role in the establishment of multilateral trade orders under WTO, which aims to promote security and fair trade policy for its member states. Today, there are various cases related to anti-dumping that are helping to analyze new regulations under International law. However, you need to make sure will your business be affected by antidumping regulations and then you must navigate them.
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