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“U.S. antidumping policy uses its injury test to ensure that antidumping duties imposed by the U.S....

“U.S. antidumping policy uses its injury test to ensure that antidumping duties imposed by the U.S. government enhance U.S. national well-being.” Why is this statement not accurate?

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Answer #1

Anti- Dumping policy is used to counter the cheap import which is intended to kill domestic competition. Such dumping by the foreign companies could prove harmful over the long run.

But here government needs to change the definition of anti dumping. Only import which is below the average cost, should be categorised as dumping. Cheap import makes the people more happy and it enhances well being of people. Further, injury test measures impact on the domestic producers. But here, both people well being and impact on domestic producers should be considered. If net impacts are positive, then government should not go with anti dumping policy.

Thus, this statement is not accurate.

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