Question

In: Economics

which group cannot file a petition with the us commerce department and ITC to initiate the...

which group cannot file a petition with the us commerce department and ITC to initiate the AD process?

Solutions

Expert Solution

Dumping :- Dumping occurs when a foreign producer sells a product in the us marked at a Price which is below the sells price of home market, or at a price loower than cost of production.Anti-Dumping is a process of imposing terrif imposed on the foreign imports to protect the home market.

Petitions are filed simulteneously with the commerce department and ITC (international trade commision), both play separate but dependent role during investigation.

To initiate the investigation the department of commmerce must determine that a petition is filled by interested party and has the support of the industry producing the domestic like product in the united states.

The commerce department will determine that the petition has sufficient industry support if it meets two creteria :-

1. 25% Test :- The domestic producer of workers who support the petition must acount for at least 25% of the total production of the domestic like product. The ratio is derived by dividing the total production volume of the supports with total us production.

2. 50% Test :- The domestic producers or workers who support the petition must account for more then 50% of the production of the domestic like product produced by that portion of the industry support for or opposition of the petition.


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