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Extra resources for Anti-Dumping Law in a Liberal Trade Order

Sample text

P. 21. Viner, op. , p. 216. Plant, op. , p. 68. Plant hirnself found no evidence of such practices. These countries included Britain, Canada, Australia, New Zealand and South Africa. See Ernst Trendelenburg, Memorandum on the Legislation of Development 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 0/ Dumping in International Trade 19 Different States /or the Prevention 0/ Dumping, with Speeial Re/erence to Exchange Dumping (Geneva: League of Nations, 1927). : Harvard University Press, 1946) p.

Indeed, the arguments in favour of a general condemnation of dumping are considerably weaker than the case against price discrimination within national boundaries. There are, however, two kinds of situation in which dumped imports may be considered injurious although one ofthese involves assumptions which are seldom accepted in domestic competition policy and neither of them, strictly speaking, concern price discrimination. The first of these situations is predatory dumping. As indicated above, both theory and evidence suggest, however, that predatory pricing in general and predatory dumping in particular are rare.

While the academic debate continues, the American courts appear to have adopted the Areeda-Turner test ofpredatory pricing. For instance, in Hanson v. Shell Oil Company15 the court cited these authors as authority for the following observation: To demonstrate predation, Hanson had to show that the prices charged by Shell were such that Shell was foregoing present profits in order to create a market position in which it could charge enough to Welfare lmplications of Dumping 25 obtain supra-normal profits and recoup its present losses.

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