e foreign company's home price) and the alleged dumped price. An investigation is not valid if the margin of dumping is determined to be less than 2 percent of export price. The amount of dumped goods from a specific country cannot be less than 3 percent of the total imports, unless countries that make up than 3 percent combined account for more than 7 percent of imports.(Consultations with Canadians). Currency fluctuations are also be considered when calculating the true prices. A country must also prove that the dumping injures or threatens to injure domestic industries. The term injure has a very specific meaning. . Injury means that there is an unfavorable effect on many different aspects of the industry, including (actual and potential declines in sales, profits, output, market share, productivity, return on investments, and capital utilization. (K & S Law). There is also a new rule called the "sunset rule." This rule states that antidumping measures should be dropped after five years once they have been implemented. In order to reapply the antidumping measures a new investigation should be opened. As a result of the WTO's very complex rules on antidumping, there is some confusion as to when antidumping measures are justified. There have been many questions about whether countries are using the right methods in calculating the margin of dumping and price differences. There is also suggestion that these rules need to be even more specific. It is very difficult in many cases to actually access whether on not a company is actually violating dumping laws. That company may simply have lower cost of production than its foreign counterparts. Even if the company sells its product at a lower price abroad than its does in its home market, it may not necessary be dumping. Factors such as differences in the cost of advertising and selling conditions at home may lead to the discrepancy. Also a wide variety of complex domestic taxes may also cau...
