Trade Remedies-What Business Needs to Know

By Roure, Jean-Sebastien | International Trade Forum, January 1, 2002 | Go to article overview

Trade Remedies-What Business Needs to Know

Roure, Jean-Sebastien, International Trade Forum

While liberalization has opened up world trade to freer competition, there have recently been more national measures blocking market access on the grounds of unfair pricing by exporters. Products such as steel, iron and chemicals from developing countries and transition economies have been increasingly subject to such measures - known as "trade remedy actions". There is a system within WTO to stop governments from abusing these actions, but in any case the consequences are serious for an exporter or a country subjected to such measures. As this article points out, even being charged with dumping carries a heavy penalty in the effort required to set the record straight. So exporters should take care to avoid creating grounds for such actions.

Trade remedies are exceptions to the WTO principles of free trade. The procedures are also unique in the WTO system in giving an active role to the business community. Governments seek trade remedies almost exclusively on the instigation of local business or because of business concerns.

The WTO identifies three main types of import restraints as trade remedies:

* Antidumping measures. The most commonly used are antidumping measures to counteract unfairly low prices. The WTO Agreement on Antidumping deems that goods are "dumped" when companies export them at prices lower than those at which they sell in their home market. Dumping is not illegal in itself; it becomes illegal as soon as it results in injury to local businesses in the importing country. Therefore, in order to initiate an antidumping investigation, local businesses must demonstrate evidence of dumping, injury to themselves and a causal link between the dumped prices and the injury to them. Generally, this takes the form of a written application to the relevant national authority (e.g., the Ministry of Trade). This authority will provide a notice of receipt of a "properly documented application" to the government of the exporting country. The national authority may, in "special circumstances", initiate an investigation without receiving an application from businesses. In any case, all interested parties receive a copy of a notice of initiation (which includes a copy of the application). The national authority also issues a notice and/or a report to the public.

* Countervailing duties. Countervailing duties counteract subsidies by national authorities that unfairly enable their companies to export at a lower price.

* Safeguard measures. These measures do not counteract an unfair practice, but allow countries to suspend import surges temporarily in order to grant local industries time to adjust to increased foreign competition on national markets.

However, if a country is thought to be breaking the rules by imposing limits for unjustified reasons, other WTO members can - and do - challenge them through the WTO's dispute settlement system.

Business concerns

The business sector and legal experts in developing and transition economies report several difficulties in interpreting and applying trade remedy laws. To help national officials and business leaders in these countries to understand the workings of the trade remedies system, ITC's World Tr@de Net programme organized regional workshops in Asia and Eastern and Central Europe, focusing on national regulations and practices in the United States, the European Union (EU) and Canada, and their implications for business. Participants in these workshops cited these main business concerns:

* Heavy procedural requirements. During antidumping investigations, the EU gives exporters only 37 days to complete its questionnaire, which participants do not think is sufficient time to complete it in detail. Also, accounting and yardsticks can differ significantly from their home countries. Participants requested more cooperation from EU representatives during their investigations.

* Use of "sampling". When the EU investigates a group of companies, it may choose certain companies as a sample group for in-depth investigation. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Cite this article

Cited article

Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)


1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25,

Cited article

Trade Remedies-What Business Needs to Know


Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25,

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.