BharatNotes Dumping
noun (chiefly economics/trade); also the present participle of the verb "dump"Usage in a UPSC answer
To shield nascent domestic manufacturers from predatory dumping by foreign exporters, India has increasingly resorted to anti-dumping duties under the WTO framework, even as it must balance such protection against the consumer-welfare gains of cheaper imports.
Synonyms
Antonyms
Word Family
dump (v/n), dumped (adj), dumper (n), anti-dumping (adj), dumps (n pl)
Root
Scandinavian origin; Norwegian dumpa = to fall suddenly; trade sense emerged late 19th c. for offloading surplus goods
Etymology
From the verb "dump," of Scandinavian origin (compare Norwegian dumpa, to fall suddenly); the trade-specific usage emerged in the late 19th century to describe the practice of offloading surplus goods in foreign markets at artificially low prices.
Memory Hook
Picture a foreign firm "dumping" a truckload of dirt-cheap goods onto another country's market — like tipping a dump-truck of surplus to bury local rivals under bargain prices.
How This Word Works in UPSC Writing
Exporting a product below its normal value, meaning below the price charged in the exporter's home market or below cost of production. It is not the same as merely selling cheaply, and that distinction decides most questions on the subject, because an anti-dumping duty is permissible under GATT Article VI only where three things are established together: that dumping occurred, that the domestic industry suffered material injury, and that a causal link connects the two. Injury caused by ordinary competition from an efficient producer is not a ground. India's investigating authority is the Directorate General of Trade Remedies, created in 2018 by merging the earlier anti-dumping, safeguards and quantitative restriction bodies, which investigates and recommends while the Ministry of Finance imposes the duty. The trade-off worth stating is that the interests are not aligned even within the importing country, since a duty protects the domestic producer while raising input costs for downstream industry and prices for consumers.
Don’t Confuse It With
Dumping is selling in an export market below normal value and attracts an anti-dumping duty, which addresses a firm's pricing conduct. A countervailing duty offsets a subsidy granted by a foreign government, so it targets state action rather than firm behaviour. A safeguard duty responds to a surge in imports that may be entirely fair trade, which is why it is temporary and why the importing country may owe compensation. A tariff is an ordinary import duty of general application, not a remedy against any particular practice.
Hindi Meaning
पाटन (pātan); परिहारी शुल्क (parihārī shulk) for anti-dumping duty.
Common Questions
- What must be established to impose an anti-dumping duty?
- That dumping occurred, that the domestic industry suffered material injury, and that the injury was caused by the dumping; injury from ordinary competition is not enough.
- What is the difference between anti-dumping, countervailing and safeguard duties?
- Anti-dumping counters an exporter's below-value pricing, countervailing offsets a foreign government's subsidy, and safeguard responds to an import surge that may involve no unfair practice at all.
Tip: press Alt+S to hear pronunciation
