The ever-expanding field of international trade needs to be governed by the laws. The international trade laws are by far the most complex laws. There needs to be a relationship between State and the laws to work in a balance. Without significant unilateral measures, the bilateral measure will not stay put. There are quite a number of issues and unfair practices such as false advertising, misrepresentation of facts, tied selling and more that need to be curbed to ensure safe trade between the countries. One such unfair trade practice is of dumping.
What is dumping?
When a company sells its goods at a lower price in the foreign market in comparison with the price charged in the domestic market is called dumping. An unfair trade practice, dumping causes chaos in the international market. This practice can be done by any country or a company. It involves a substantial volume of exported goods and plays havoc on the business of the domestic manufactures in the importing country.
The new global trading order
Ari Afilalo, the author of The New Global Trading Order, states in his new book that a relationship between the State and the international trade laws can enhance and evolve the effectiveness of the international trade laws. The practical changes need to be applied to the international trade laws. These changes will help to curb the unfair trade practices such as dumping. Dumping is not illegal but strongly disapproved.
Can trade agreements stop dumping?
The majority of trade agreements prohibits dumping. Violation of the agreement might lead to severe complications between the relations of the two countries. If no trade agreement was set between the two countries, it is difficult to ban the practice of dumping between the two countries. The breach of these trade agreements can lead to the heavy instability between the constitution of the country and the international trade laws. Ari Afilalo explains how a country can become unstable due to unregularized dumping and incompetent international trade laws. Want to know more? Pick your copy of Ari Afilalo’s The New Global Trading Order.