Article 16 establishes the Committee on Anti-Dumping Practices and sets out every six months the requirements for Members to notify without delay all provisional and definitive measures taken in anti-dumping investigations and to notify all measures taken during the relevant reference period. Measures against dumping subsidies (sales at unjustifiably low prices) and special countervailing duties to offset subsidies Emergency measures to temporarily limit imports in order to protect domestic production. 7.2. Provisional measures may take the form of a provisional duty or, preferably, a guarantee, by cash deposit or security, at the level of the provisionally estimated anti-dumping duty, which shall not exceed the provisionally estimated dumping margin. The continuation of the review is an appropriate provisional measure provided that the normal duty and the estimated amount of the anti-dumping duty are indicated and that the continuation of the review is subject to the same conditions as the other provisional measures. 8.2. Price undertakings may be requested or accepted from exporters only if the authorities of the importing Member have provisionally confirmed the dumping caused by such dumping and the injury caused by such dumping. Anti-dumping investigations are immediately terminated if the authorities find that the dumping margin is insignificant (defined as less than 2 % of the export price of the product). Other conditions are also set. For example, investigations must be terminated even if the volume of dumped imports is negligible (i.e. where the volume from a country is less than 3 % of total imports of that product, although investigations may continue if several countries, each providing less than 3 % of imports, together account for 7 % or more of total imports).
5.7. Evidence of dumping and injury shall be taken into account simultaneously (a) in the decision to initiate an investigation and (b) thereafter in the course of the investigation, from the earliest date on which provisional measures may be applied under this Agreement. If an enterprise exports a product at a price lower than the price it normally charges in its own domestic market, it claims dumping for the product. Is this unfair competition? Opinions differ, but many governments crack down on dumping to defend their domestic industry. The WTO Agreement is not judgmental. It focuses on how governments may or may not respond to dumping, it disciplines anti-dumping measures, and it is often referred to as an anti-dumping agreement. (This focus solely on the response to dumping is contrary to the approach of the Agreement on Subsidies and Countervailing Measures.) Dumping is generally a situation of international price discrimination when the price of a product, when sold in the importing country, is lower than the price of that product on the market of the exporting country. Thus, in the simplest case, dumping is identified simply by comparing prices on two markets.
However, the situation is rarely, if at all, so simple, and in most cases it is necessary to perform a number of complex analytical steps to determine the reasonable price in the market of the exporting country (known as normal value) and the reasonable price in the market of the importing country (known as the export price) in order to be able to make a reasonable comparison. .