The basic rule under the World Trade Organisation (WTO) agreements on anti-dumping measures
(ADM) and subsidies and countervailing measures (SCM) is that anti-dumping and countervailing
duties could be levied only when it is established on the basis of investigations that,
• there has been a significant increase in dumped or subsidised imports, either in absolute
terms or relative to production or consumption,
• prices of such imports have undercut those of the like domestic product, have depressed
the price of the like product or have prevented that price from increasing, and
• injury is caused to the domestic industry or there is a threat of injury to the domestic
industry of the importing country as a consequence.
Furthermore, relevant economic factors having a bearing on the state of the industry need
to be taken into consideration while determining the injury. Also, there is a need to clearly
ascertain that there is a causal link between dumped or subsidised imports and the injury to
the domestic industry.
Though these rules are laid out to guide int