ABSTRACT
Antidumping laws can work with countervailing duty laws, Section 301, and antitrust laws to promote open markets, expand trade, and put an end to mercantilism and protectionism. Unless antidumping laws are a full-fledged part of this strategy, however, US marketplace will be vulnerable to foreign protectionism through cross-subsidized dumping and could be ravaged by the emergence of Nonmarket economies, such as China and Russia. The only instances in which dumping can be pursued as a long-term strategy involve government support through one of the following channels: government subsidies, a protected home market, or government toleration of cartels. In these three instances, operating profits can be generated either through direct government payments or through above-market prices extracted in protected home markets. Dumping is a very costly proposition unless it is supported by a protected home market. Otherwise, dumped goods could be re-exported to the home market at the dumped price, depressing profit margins at home and thwarting the objectives of dumper.
