Anti-Dumping Policy. Dumping-the sale of foreign goods in the U.S. market at prices
below those charged in the producing nation-presents a special trade-problem. Dumping is
often undertaken by foreign firms to introduce new products in the U.S. market; once
Americans have accepted the product, prices go up.This pattern has been regularly followed
by Japanese automobile manufacturers. Dumping is also undertaken in order to destroy U-S.
firms by underselling their products and forcing them out of business. Once foreign producers have driven out U.S.manufacturers, they raise their own prices. Dumping provides only
temporary advantages to American consumers.
Dumping is officially illegal. The Trade Agreements Act of l979 provides that special
anti-dumping tariffs may be imposed when it is proven that a product is being sold in the
United States at a price lower than that in the domestic market of a foreign producing
nation. But it is a difficult and lengthy process for U.S. domestic firms to bring formal complaints to the U.S. government and obtain relief