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. » An anti-dumping duty is a protectionist duty imposed by a national government on foreign imports which it considers to be less than their fair value. Dumping is a procedure in which a company exports a product at a price significantly lower than it normally calculates in its domestic market (or domestic market). In the United States, the International Trade Commission (ITC) – an independent government agency – is responsible for imposing anti-dumping duties. Their actions are based on recommendations they received from the U.S. Department of Commerce and investigations conducted by the ITC and/or the Department of Commerce. In June 2015, united States Steel Corp., Nucor Corp., Steel Dynamics Inc., ArcelorMittal USA, AK Steel Corp.
and California Steel Industries, Inc. filed a complaint with the U.S. Department of Commerce and ITC. In his complaint, several countries, including China, launched steel into the U.S. market and kept prices unfairly low. This intervention must be justified in order to put an end to the WTO`s adherence to the principles of the free market. Anti-dumping duties have the potential to distort the market. In an open market, governments are generally unable to determine what a fair market price is for a service or service. U.S. International Trade Commission. « Understanding anti-dumping and countervailing duty investigations. » Access on September 10, 2020.
International Trade Administration. « Commerce initiates Antidumping Duty and Countervailing Duty Investigations of Imports of Corrosion-Resistant Steel Products from China, India, Italy, Korea and and Taiwan, » Pages 1 and 5. Access on September 10, 2020. Following a review a year later, the United States announced that it would introduce a total of 522% of combined anti-dumping and countervailing duties on certain steels imported from China. In 2018, China filed a complaint with the WTO, outspoing tariffs imposed by the Trump administration. Since then, the Trump administration has continued to use the WTO to challenge unfair trade practices by the Chinese government and other trading partners.