Antidumping, Business Ethics and International Relations

Antidumping laws have been the protectionist's tool of choice since the creation of the World Trade Organization led to the decline of tariffs and quotas and the liberalization of trade. Domestic producers have abused the antidumping laws to prevent foreign competition at the expense of the general public. It is a practical example of rent seeking. The aggressive use of the antidumping laws has led to problems in international relations as well, since target nations feel they are being treated unfairly. In some cases, they retaliate by imposing trade restrictions of their own on the countries that launched the antidumping investigations against them. This paper explores recent developments in this area and examines the use of antidumping laws by domestic producers from the perspectives of business ethics and international relations