WTO says anti-dumping cases declining

05/03/2012 12:00 - 441 Views

The head of the World Trade Organization says there has been a big drop in the number of anti-dumping cases brought by governments, the reverse of what many observers expected to see in an economic downturn.

Speaking Monday in Geneva, Switzerland, Pascal Lamy, Director-General of the WTO said, “There had been a significant decline in initiations of new (anti-dumping) investigations, from 213 in 2008 down to 153 in 2011.”

Lamy told a gathering of government officials responsible for initiating these investigations that the decline in case numbers comes at an important point given the economic collapse of 2008 and worries over protectionist tendencies.

The WTO says merchandise trade flows jumped by a record 14.5% in 2010, after plunging by 12% the year before. Global trade growth slowed last year, and still remain below peak levels.

Many observers, including leaders of G-20 countries, worried that governments would respond to the economic and trade slowdown by imposing protectionist measures.

Often governments look to protect domestic industries during slowdowns by imposing measures like anti-dumping cases. This has not taken place, the WTO head said, although countervailing investigation has increased.

“Of course, whatever the temporary fluctuations in trade flows, trade problems and frictions tend to persist, and often are accentuated, during cyclical downturns in economic activity and trade,” Lamy said.

Source: feedstuffs.com