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World Trade Organization

Trump is right about dumping

Late last month, President Donald Trump issued an executive order focusing on international cheaters who do not pay their debts due to dumping penalties. The order targets the problem of unpaid special customs duties known as "Countervailing Duties" or CVD that are levied on products from companies found guilty by an "anti-dumping" investigation.

First to the jargon: "dumping" refers to a type of predatory trade practice. In its simplest form, it amounts to a company selling a product in a foreign market for less than it costs to make it. In theory, the goal of dumping is to drive down the price and, in doing so, muscle out smaller, weaker competition...